Here we are, the Inland Empire….devastated by home values that have decreased up to 60%, unemployment reaching an epic 17 to 20%…a community at large doing all they can to help assist those in need.
Can we get real…just for a little while?
As realtor’s specializing in short sales, helping homeowners avoid foreclose when their loan modifications are not approved, or they have lost income and could not afford the mortgage any longer, we find ourselves wondering what the heck is going on with banks, servicers, investors….????
A recent invitation to speak at a Sustainable Homeownership Conference left us speechless…yes, I know that’s difficult to believe, us….speechless!
With SVP’s of Bank of America, Freddi Mac, Saxon Mortgage and J.P. Morgan Chase as our fellow panel members, we got it straight from the “Horses Mouth” that these banks don’t want to sell to investors.
Understanding of course that HOMEOWNERSHIP is what we all want to see for Americans that possess the requirements to be homeowners. The fact is pretty clear in our area that most homeowners are not able to sustain their status as homeowners because of various circumstances:
- Loan Modification Rejected
- Loan Modification Not Helpful Enough To Maintain Homeownership
- Homeowner is upside down more than 50%, no principal reduction offered by lender
Also realizing that lenders today, are not letting go of money easily. Even with perfect credit and perfect income it’s an amazing day when the loan finally funds!
Now let’s look at buyer statistics:
- As of May 2010 New Loan Applications are down by 50%
- Home Buyer Tax Credit Expired April 30th 2010
- New Home Builds worst ever sales month May 2010
- Buyers waiting on projected continued home price declines
Investors, what’s their profile look like?
- Good credit and able to obtain funding
- Cash Buyers
- Homeowner that sold at the real estate peak
Back to the Question….What’s wrong with the seller being able to enter into a lease with the “New Home Owner” to rent the property?
This seller will need to rent somewhere, they could not afford to keep their home.
Why punish the seller??
By now, the seller has already experienced sleepless nights and anxiety. Renting back helps to lesson some of that grief…to not having to uproot the family, change schools….come up with moving costs…etc..etc……
I’m sure that there will be those who read this and express dissatisfaction of an investor being able to buy up homes, and there will be the same disgust from others for letting the seller stay in the home and rent it.
Kris and I are seeing what’s happening here first hand, everyday. If we’re able to get an “investor” that is willing to pay market value for a short sale and keep the “renter” we need the banks to support this. “WE” represents all of us, hoping to see the housing market start any kind of recovery.
I don’t know about you, but seeing more boarded up homes in neighborhoods makes me ill. There is also great comfort knowing that the family who lost their home can continue living in familiar surroundings while moving forward and rebuilding.
Kim
