Selling Your Home - Short SalesSimply put, a short sale is when you're looking to sell and you own more on the property then it's worth. (underwater)
Short sales aren't mentioned much at this point. The real estate market in Placer County has been on the rise since 2012. When people have equity, they aren't looking to walk away from their home. Everything is in a cycle though and I think we will see short sales and foreclosure come back within a few years. Hopefully people are able to refi into a low rate and ride out the next downturn in the market. I have several REO accounts with different banks. I have reached out to them to see if they have any homes coming on their radar. Due to Covid-19 the banks have been on a moratorium. No new foreclosures are on the horizon in Sacramento and Placer county. This will change at some point. Once we get thru this pandemic the banks will be able to begin the foreclosure process again. With that said, we don't expect much in 2021.
The market has continued to climb this year. It seems we might be at a peak. The 10 year and 30 year treasury bonds are very low and that isn’t making sense. The fed said they were going to begin slowly buying up bonds which will raise rates, but they are dropping. Odd!
More about short sales, I think we’ll see some at the end of next year, along with some foreclosures. We’re not on a house of cards, or are we? It’s different from before, people are qualifying for home loans but our government keeps printing money. If this continues the market can crash from other factors ie… inflation. If nothing else I see a correction coming. Make sure you’re locked in at a good rates and ride this puppy out.