It’s been a wetter and grayer winter than normal in Santa Fe. While we’re all eagerly awaiting spring, this wetness (127 inch snow base at Santa Fe Ski area) will ensure a verdant landscape and full reservoirs.
Meanwhile, the local real estate market is slogging along with signs of pent-up buyer energy and sales the first three months exceeding last year’s. With much inventory from which to choose and increasing motivation by many sellers, coupled with interest rates holding around 5%, qualified buyers have an excellent opportunity to seize upon their dream of owning a home in Santa Fe.
Having recently been certified in short sales and foreclosures after an 8-hour course from the National Association of Realtors, I can tell you that the frustration, uncertainty and lack of care on the part of banks is generally not worth the effort. Banks are not eager to negotiate short sales, especially if there are other lien holders. Getting underwriters to agree to accept less than the loan balance is an iffy-proposition and can take weeks or months to get a response once the homeowner has been re-qualified for the house he’s been paying on, sometimes for many years. If a short sale is finally granted, the price is often not for enough less to make it a “great deal” for the buyer.
Banks are tending to prefer foreclosure. In some cases, they are reimbursed by the FDIC (more taxpayer money!) for the difference between what they sell it for at foreclosure and the balance of the loan. For the homeowner facing displacement via foreclosure, the resentment level is understandably high. This often leads not only to deferred maintenance but outright vandalism and destruction of the property prior to being evicted. Once the homeowner (or tenants) are evicted, the house usually sits empty for quite some time before it is processed by “asset managers” representing the lender and placed with a local real estate agency to sell.
For the homebuyer who may be interested in the property, again the price may not be significantly less than a comparable home that is still owned and maintained by the seller. And the process of offering to purchase a foreclosed property is aggravating, as the asset manager sets all the terms for closing and need not adhere to any typical time frames.
While buyers are being marketed to about the “great deals” in short sales and REO (bank owned) properties, that’s not what we’re seeing in Santa Fe. I am happy to discuss this with you. Call me: (505) 995-0195.
Moving along with changes and improvements to GreenRoads Realty, please visit our new eZine, www.GreenLivingNewMexico.com for articles about Santa Fe arts, cuisine, non-profit organizations and green real estate.
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