Check out this short video. Alex Charfen had to file bankruptcy a few years ago. Now he is the CEO of a $ 10,000,000 corporation. He is a smart cookie! He might have a good idea here.
BANK OWNED (FORECLOSURE/REO) HOME SALES DATA FOR EDH, CA – MAY 2012
This is the latest monthly report of our more than four-year study of bank owned (foreclosure/REO) home sales in EDH, CA. This report covers May 2012.
There were three bank owned (foreclosure/REO) homes that sold in May that will skew the statistics. We will address those home sales before going on to our normal monthly report.
The first, item number three in the chart below sold for 129% of the asking price. ($ 74,100 over asking price) The reason for this seems to be that the original price for a 3640 square foot home was extremely low. The listing agent may have been trying to set up a buyer bidding war. If so, it was successful.
The second, item number 4 in the chart below, sold for 136.5% of the asking price. ($ 91,000 over asking price) The home was small and unimpressive; however, it sits on a 10.5-acre parcel, a much larger parcel than normal. Perhaps a developer has plans for that parcel.
The third, item number 12 below, had been on the market for 802 days, started with an asking price of $ 1,115,400 and finally sold for $ 735,000. Not many buyers are interested in a home with 8,486 square feet. Therefore, it sold for 65.9% of the original asking price.
All three of these homes sold with statistics far outside the norm.
The average days on market increased from 49 in April to 108 in May (thanks to the last home on the list), yet 34% of the bank owned (foreclosure/REO) homes sold in two weeks or less.
The 12 bank owned (Foreclosure/REO) homes that sold represent only 14% of ALL homes sold in El Dorado Hills this month, a smaller segment than normal.
The available inventory of bank owned (Foreclosure/REO) homes in El Dorado Hills dropped to a .5-month supply in May, down from a 0.6.0-month supply in April. This inventory level has only been above a two-month supply one month in the past fifteen.
The inventory for ALL homes available in El Dorado Hills dropped to a 1.7-month supply in May, down from a 1.9-month supply the previous month. Pundits tell us that a 6-month supply is a neutral market, so we continue to have a strong seller’s market for ALL homes in El Dorado Hills, both bank owned and non-bank owned.
The average cost-per-square-foot for Bank Owned (Foreclosure/REO) homes dropped to $ 127 in May, down from $ 131 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in May was $ 155, up two dollars from April. In fact, that is the highest cost per square foot for any month since May of 2011.
The overall sales price for bank owned homes was 104.5% of the final asking price and 98.5% of the original asking price, largely due to the 2 home sales mentioned above. Forty-two percent of the buyers paid the full asking price or more in May for their bank owned (foreclosure/REO) home, a slightly larger segment than normal.
When based on the cost-per-square-foot for ALL homes sold, bank owned homebuyers paid 18% less in May. That is a $ 28 pre-square-foot savings. When applied to a 2500 square foot home, that represents a savings of $ 70,000, a substantial sum.
If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
This short video explains a short sale in easy to understand language.
If you have any questions feel free to contact us (916) 337-0658
BANK OWNED (Foreclosure/REO) HOME SALES DATA FOR FOLSOM, CA – MARCH 2012
This is the latest monthly report of our more than four-year study of bank owned (Foreclosure/REO) home sales in Folsom, CA. This report covers March of 2012.
The average days-on-market decreased from 42 the previous month to 36 in March. None of the homes had been on the market for over 100 days, and 50% of the homes that sold were on the market for two weeks or less. Well prices homes in good condition are selling quickly.
The 10 Bank Owned (Foreclosure/REO) homes that sold represent only 14% of all homes sold in Folsom this month. The very low bank owned home inventory is the reason this segment or market is so low.
The available inventory of bank owned homes in Folsom increased to a 1.2-month supply, up from a .8-month supply the previous month. That inventory level has not exceeded a two-month supply for over a year. The inventory for bank owned homes in Folsom peaked at a 2.8-month supply in January 2011, and has not reached that level since. The available inventory for ALL homes available dropped to a 1.1-month supply, down from a 1.5-month supply the previous month. We have not had an inventory of more than a three-month supply since February of 2011. Pundits tell us that a 6-month supply is neutral market, so Folsom remains a strong seller’s market for both bank owned homes and all other homes on the market. The Folsom market reflects what is happening in the rest of California and the western US. Inventory levels are very low. This factor is going to have an impact on housing prices in the very near future.
The average cost-per-square-foot for bank owned homes was $ 144 in March, down from $ 147 in February. The average cost-per-square-foot for ALL homes sold in Folsom in March was $ 154, up from $ 151 the previous month. It has been moving within a narrow range for the past year.
The overall sales price for REO homes was 99.6% of the final asking price and 98.8% of the original asking price. In addition, 60% of the buyers paid the asking price, or more, for their Folsom bank owned Foreclosure/REO) home in March.
Based on the cost-per-square-foot, bank owned homebuyers saved ten dollars per foot on their bank owned home compared to the cost for all homes sold in Folsom this month. When applied to a 2,500 square foot home, that represents a savings of $ 25,000: a tidy sum
Given the overall data, it is obvious that homeowners who do not have to sell are keeping their homes, rather than accepting current market value offers.
If you have any questions about purchasing a home in Folsom, a Folsom Foreclosure, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.
The data follows:
BofA TO REDUCE LOAN PRINCIPAL FOR 200,000 HOMEOWNERS!
We’re not in Kansas any more Toto–there has just been a paradigm shift in the nation’s mortgage loan industry. Bank of America just announced that it is reducing the principal balance of existing mortgage loans for as many as 200,000 underwater homeowners!
Several days ago, we wrote a post about the $ 25,000,000,000 foreclosure settlement between the government and the five largest loan servicers. Bank Of America was one of them. Apparently, B of A made a side deal committing $ 1,000,000,000 to reduce loan principal for borrowers.
B of A estimates an average reduction of more than $ 100,000! The goal is to change the financial situation for these homeowners, so that they are no longer underwater.
This is quite a public relations splash. Unfortunately, the billion-dollar sum mentioned is only nineteen billion short of the total required to meet the stated commitment. I guess we can’t expect bankers to do the math correctly!
Of course, this is not a purely philanthropic exercise. The actual goal is to reduce the $3.25 billion in penalties B of A faces from the foreclosure settlement.
Distressed homeowners may be eligible if B of A is their loan servicer and they must be at least 60 days late on their mortgages as of January 31.
Only loans owned by B of A or private investors are eligible. They include loans originated by Countrywide and Calabasas, both acquired by B of A in the past several years.
Loans owned or backed by Fannie Mae, Freddie Mac, the FHA or VA are not eligible. This segment covers the majority of loans.
B of A has three years to complete these principal reductions and avoid the government-imposed penalties.
We hope that this program actually helps many homeowners. It is amazing what happens when the government applies a little heat.
To view the complete New Your Times article, select this link:
If you know someone in the greater Sacramento area who is facing foreclosure and needs assistance, have them contact us at (916) 337-0658 or e-mail Mike@BuyYourVilla.com