Why would people list their home as a short-sale?
Because their lender is applying pressure to either make payments, short-sale, or be foreclosed. At least that is the old-fashioned way of banking.
It’s possible that, after months or years of delinquency, some might start making their payments again if they receive that magical loan-mod/principal reduction package. I just haven’t met anybody who has.
Maybe I’m a skeptic, but these stats make it appear that the banks aren’t applying much pressure – distressed listings are 1/3 of last year’s total:
NSDCC Detached-Home Listings, First Quarter
| Listing Type | 2012 | 2013 |
| REO | ||
| Short-Sales | ||
| Regular | ||
| Totals |
It might make sense for banks to be lenient in depressed areas where sales and prices are struggling, but around here we are starved for inventory. The policy is working so well that it may last a long time – the ultimate can-kicker!
Meanwhile, another 85 new listings hit the MLS since our last reading, and we had 81 new pendings with a few cancelled/withdrawns – demand is raging:
| Date | NSDCC Active Listings | Avg. LP $$/sf |
| Jan 14 | ||
| Feb 4 | ||
| Feb 10 | ||
| Feb 25 | ||
| March 6 | ||
| March 11 | ||
| March 16 | ||
| March 23 | ||
| March 31 | ||
| April 5 | ||
| April 11 |
This is the most important indicator to watch – if the active inventory starts to grow, it means buyers are backing off.
Seen today as the description of a house for sale:
PLEASE FOLLOW INSTRUCTIONS AND DO NOT CALL AGENT. .. NO PHONE CALLS WILL BE RETURNED
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program by two years to Dec. 31, 2015.
The program was set to expire at the end of this year.
“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said Ed DeMarco, acting director of the FHFA.
He added, “We are extending the program so more underwater borrowers can benefit from the lower interest rates.”
http://www.housingwire.com/news/2013/04/11/fhfa-extends-harp-2015
Got to love the agents who dont want to talk to anyone.
I guess they are coming out with 97 month auto loans now:
http://online.wsj.com/article/SB10001424127887323646604578403191117526644.html
I wonder if we will see 40 and 50 year real estate loans as prices go higher? 0% interest rates and 50 yr loans could help affordability.
All the more reason we can expect rates to remain low almost indefinitely. The economy as it relates to consumer spending is so addicted to low rates that anything and everything will be done to help free up more spending money from households.