Friday, January 15, 2010

Las Vegas Foreclosures and Las Vegas Short Sales

Listened to Harris Real Estate University Superstar Interview today. Cary Sternberg, president of an asset management company, talking about foreclosures. I've summarized some key points of the interview below.

Shadow inventory does it exist? Well, no - banks are not holding back inventory. Anything that has been foreclosed on is out there for sale.

However, nationwide there is 2.4 - 7 million properties that are in the default pipeline. This is what he calls "shadow inventory." They are not being foreclosed on because other avenues are being explored such as moratorium, government programs, loan modification or adjustment.

Sternberg predicts that by the end of this quarter the shadow inventory will start hitting the market. It will increase through the year. This could lead to some price decreases, but he feels that we are already so low that it won't be much.

Sternberg thinks we are five to seven years away from having homes on the market that are owned by individual owners. Meaning, that it will continue to be more bank owned and short sales that are on the market. This is not a depreciation phase, he is talking about the market normalizing.

Sternberg opines that those people who bought at the height of the market will have to wait ten years before they will be able to sell and break even.

That is all. If you are having problems making your mortgage payments - call me. If you need to sell and owe more than what you can get for it - call me. Let's explore whether a short sale of your Las Vegas homes is an option. I have a Certified Distressed Property Designation and am experienced with short sales. I can help you. 702-807-3339.

Enjoy your Weekend.

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