www.homeseekercenter.com Today's market for residential real estate is made up of deals arising from broken loan modifications, short sales, foreclosures, bank owned properties, distressed sellers, receivership's and bankruptcy trustees. In some markets we are seeing an increase in the number of closed transactions in the lower end properties, stimulated by first time buyers. People want a bargain, and many are willing to wait for several months working through the short sale process. Others are willing to be a part of a frenzied bidding war over a bank-owned house. Worse, in some way, the supply of residential property has been artificially constrained during the past months by:
- New state statutes requiring banks to engage in work-out negotiations before foreclosing;
- The federal government requesting a voluntary moratorium on foreclosures;
- Borrowers filing lawsuits and bankruptcies; and
- The promise of a bailout of financially strapped borrowers.