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July 15th, 2011 was another big day for anyone in financial distress on their primary residence in California. Along with Senate Bill 931, signed in January, which prohibits a deficiency judgment against a homeowner after an approved short sale on their first mortgage, Governor Jerry Brown signed Senate Bill 458, ... [Read More]
Image by Getty Images via @daylife
July 15th, 2011 was another big day for anyone in financial distress on their primary residence in California. Along with Senate Bill 931, signed in January, which prohibits a deficiency judgment against a homeowner after an approved short sale on their first mortgage, Governor Jerry Brown signed Senate Bill 458, which prohibits a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lien-holder. In short if you have an approved short sale on the first mortgage the lien holder cannot pursue you for any difference between the short sale price and that loan balance. The same goes for the second mortgage. This is for any short sale closing after July 15th 2011.
It has been a couple of months since I ran the numbers for the market activity in South Lake Tahoe, so I included the past three month’s activity in my calculations.
354 Active Listings, of those listings 66 are either REO or Short Sale listings comprising 19% of the total. As usual, these calculations are made ... [Read More]
It has been a couple of months since I ran the numbers for the market activity in South Lake Tahoe, so I included the past three month’s activity in my calculations.
354 Active Listings, of those listings 66 are either REO or Short Sale listings comprising 19% of the total. As usual, these calculations are made on sales activity of single family homes in the City – County areas of the South Tahoe Area Realtors MLS data.
186 Sold listings in the past three months with distressed properties making up 37% of those homes closed. 55 – 30% REO Listings 14 – 7% Short Sale Listings
Pending listings are made up of 75% of either REO or Short Sales.
The trend in which distressed properties are a minority of the inventory and a majority of those homes that are selling seems to have shifted down a bit. I will venture to say that “real sellers” have realized that their homes will sell if priced competitively and buyers would rather deal with a “real seller” rather than a bank and certainly rather than a short sale, which is anything but “short’. It is all about the well priced property. Let’s see what happens in the next month with the pending listings being comprised of 75% distressed properties. We’ll see how many of the short sale buyers get tired of the wait and snatch up a well priced home that not a distress sale. More Later.
