What is Short-Sale.com?
What is Short-Sale.com? Information about short selling stocks? Not us. We are a real estate short sale solution provider.
What is a short sale? Simply, it is the process of selling a home for less than is owed on the existing mortgages in order to provide financial relief to homeowners who may otherwise face foreclosure or bankruptcy.
About 7 years ago we purchased short-sale.com with an idea that the late 1980's and early 1990's weak housing market would come back and that the short sale process could be improved upon dramatically. In 1991 about 50% of all homes sold in Orange County, California were real estate short sales.
In that time, the real estate market obviously exploded with average real estate values having doubled over the last 5 years. This was due to demographics, historically low mortgage rates, loose mortgage lending guidelines, creative interest-only mortgages and the change in general publics attitude of real estate primarily a "home" to that of real estate as an "investment".
Now, coming off the highs of August 2005, it appears that the real estate markets maybe correcting and the short sale market we imagined may come around. The difference this time is that we feel it will not be a local condition like Orange County in the 1990's but a national occurrence.
6 months ago, there was no "short sale" real estate listings in the San Gabriel Valley / San Bernardino area. Currently there is about 160. In the Sacramento area it went from 60 or so listings to 284. Across San Diego, the median price has actually already dropped about 6.7% according to the board of REALTORS.
As 9 trillion dollars of adjustable rate mortgages come up for adjustment over the next two years and mortgage lending guidelines tighten, we believe that will be dramatic demand for short sale services.
Many home buyers and real estate investors will no longer be able to afford their properties and they will be required to sell quickly or face foreclosure. As more and more foreclosures come onto the market, property prices may continue downward due to the pricing pressure of these foreclosures on the normal real estate listings.
All of the previous talk of a housing bubble seems to be confirmed by some of the recent data that is out.
We suspect that the NAR will release it's existing home sales data for August and when they do, it will be the first time in the history of the United States that home values will have decreased. The media will jump on this and current home buyers may sit on the sidelines for a while.
So sit back and watch the ride as we will try to cover all of the important data, trends and news as it pertains to a slowing real estate economy and how our service will fit into the equation.
What is a short sale? Simply, it is the process of selling a home for less than is owed on the existing mortgages in order to provide financial relief to homeowners who may otherwise face foreclosure or bankruptcy.
About 7 years ago we purchased short-sale.com with an idea that the late 1980's and early 1990's weak housing market would come back and that the short sale process could be improved upon dramatically. In 1991 about 50% of all homes sold in Orange County, California were real estate short sales.
In that time, the real estate market obviously exploded with average real estate values having doubled over the last 5 years. This was due to demographics, historically low mortgage rates, loose mortgage lending guidelines, creative interest-only mortgages and the change in general publics attitude of real estate primarily a "home" to that of real estate as an "investment".
Now, coming off the highs of August 2005, it appears that the real estate markets maybe correcting and the short sale market we imagined may come around. The difference this time is that we feel it will not be a local condition like Orange County in the 1990's but a national occurrence.
6 months ago, there was no "short sale" real estate listings in the San Gabriel Valley / San Bernardino area. Currently there is about 160. In the Sacramento area it went from 60 or so listings to 284. Across San Diego, the median price has actually already dropped about 6.7% according to the board of REALTORS.
As 9 trillion dollars of adjustable rate mortgages come up for adjustment over the next two years and mortgage lending guidelines tighten, we believe that will be dramatic demand for short sale services.
Many home buyers and real estate investors will no longer be able to afford their properties and they will be required to sell quickly or face foreclosure. As more and more foreclosures come onto the market, property prices may continue downward due to the pricing pressure of these foreclosures on the normal real estate listings.
All of the previous talk of a housing bubble seems to be confirmed by some of the recent data that is out.
We suspect that the NAR will release it's existing home sales data for August and when they do, it will be the first time in the history of the United States that home values will have decreased. The media will jump on this and current home buyers may sit on the sidelines for a while.
So sit back and watch the ride as we will try to cover all of the important data, trends and news as it pertains to a slowing real estate economy and how our service will fit into the equation.
posted by Jessie B at 12:47 PM
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