Posterous

Short Sale? Foreclosure? Strategic Default?

Underwater borrowers are often in a quandary about what to do. It's been reported that 70% of borrowers whose homes are foreclosed upon never contacted their lender. 

Lenders prefer short sales. Foreclosure sales not only typically cost more, but also result in lower sales prices. Net proceeds in a foreclosure are only 70%, on average, of that realized in a short sale.

The government's HAFA guidelines are new in practice since this past month. Borrowers (sellers) who are considering a short sale should become well educated on HAMP, HAFA, the short sale process and what they all mean to their specific circumstances. If HAFA is the correct alternative, they should request a short sale packet from Pat Holkesvig and Your Home Team.

Your Home Team lists and closes more short sales than any other Central Valley agent or team. Our short sale processing is cost free to the seller and we are ready to help. Call us at (209) 471-6516 with any questions you may have. We also blog frequently about the short sale process and real estate trends. Visit our blog at StocktonRealEstateSpecialist.com. Call NOW - before it is too late.

The following are market highlights for some of our Stockton neighborhoods. Click on the name of the neighborhood to view detailed reports and graphs for that neighborhood.

Click here to search the MLS like a realtor or the following links to view the homes available in the following neighborhoods!

(Links are available at the bottom of this email to detailed market reports for Brookside, Lincoln Village, Lincoln Village West, Morada, Morada West, Quail Lakes, Spanos East and Spanos West.)

Stockton Market Trend:

Increased delinquencies, current foreclosures,  and upcoming problems related to Option ARMs should result in a housing inventory increase and reduced lending ability - and continued home price reductions. Traditional laws of supply and demand dictate this will happen, unless there is massive finance industry (bank and governmental) interference.

Stockton Stats for April 2010

·      There were 2,248 homes for sale in Stockton at the end of the month. This total includes 874 pending units, leaving a balance of 1,374 units (2.9 months' inventory) available for sale.

·      5,637 homes were sold in Stockton during the 12 month period ended April 2010, an average of 470 homes per month. This compares to a 566 unit average per month one year ago, a 17% drop.

·      1,642 homes sold in the last 4 months, compared to 2,169 units sold in the same period last year. SALES ARE SLOWING...

·      There is a 5 month inventory on the market (see the "Months Sales In Inventory" chart above). Exclusive of pending sales (more transactions fall out of escrow in this market than in a normal market) there is a 2.9 month adjusted inventory.

·      There should be a rash of new homes that will be placed on the market over the next few months unless lenders "bank" foreclosed-upon homes, or some other solution is found for 'warehoused' foreclosures and other "Shadow Inventory". Click here for our comments on Shadow Inventories in October.

·      456 units were sold this month.

·      The average sales price per square foot is $85 - less than the cost to build a home.