My perspective of San Diego distressed properties.

Short Sales are still prominent in the market and will be for some time. However financial institutions are becoming more affluent to liquidating those assets in a timely manner. Bank directed short sales are becoming more prominent. Some banks are are taking the route of pre-approving a property for a short sale, then providing the file to an a Realtor to consult the distressed homeowners, and listing the property for sale. This expedites the process immensely and in most cases shortens the approval time from the traditional short sale. Short Sale vs foreclosure, Costs/shadow inventory. My opinion is that banks will be forced to assume short sale approvals vs foreclosures in order to avoid adding to the already overwhelming shadow inventory. I think properties will be approved much quicker and more frequently to assure buyers that they are obtainable, and obtainable in a realistic time frame. This will also lower the losses incurred by the banks, as the foreclosure period is lengthy and ultimately cost far more than short selling a property that already has a buyer in place. Bank assessing assets for shadow REO listings to start easing the weight. I have heard that many financial institutions are beginning to asses their current inventory, given the condition of the market and speculation of the next 6-12 months. We are seeing an increase in demand and sales price, while inventory is still low in San Diego and more buyers are coming into the picture. This could mean that some banks may start releasing assets that have sat on the books and are seasoned. With both the bank directed short sales and the assessments on current shadow inventory, the financial institutions may be starting to change the tides.

Cell: 619-788-8354 

Email: Pete@DamatoRealEstate.com
Web: www.DamatoRealEstate.com

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