Buyers who acquired foreclosures in 2010 also benefited from a steep discount, with foreclosed homes selling 28% below the average price of non-distressed properties. Foreclosure sales a year earlier were selling 27% below the average sales price.

At the same time, the actual sales volume of properties not in distress declined 19% between 2009 and 2010 and 27% from 2008.

Foreclosure sales are expected to pick up in 2011 — a blessing and a curse for the housing market.

The catch-22 for 2011 is that while accelerating foreclosure sales will help clear the oversupply of distressed properties and return balance to the market in the long run, in the short term a high percentage of foreclosure sales will continue to weigh down home prices.

Experts are predicting that short sales could increase 50% industrywide this year. The projected increase is due largely to changes in the Obama administration’s Home Affordable Foreclosure Alternatives, or HAFA, program that opens up eligibility to a larger group of homeowners. AMS has determined through analysis of its 2010 short sale metrics that as many as 91% of previously ineligible borrowers might now be eligible for the HAFA short sale program.

In the past, servicers were more reactive than proactive when it came to short sales, looking at potential short sales that were brought to them, but not pursuing them ahead of time. But that is changing, said panelists who discussed trends in short sales.

The Treasury Department took action in December eliminating some rules it said have held back short sales through the HAFA program. HAFA no longer asks for income verification, unless the borrower is less than 60 days overdue on the mortgage. This means that borrowers who previously were deemed ineligible because their income was too high, may now qualify for a HAFA short sale.

Changes to the program are seen as positive by servicers. It works best, when used pro-actively, by helping the borrower market the property instead of having the borrower come to the servicer with a buyer in hand.

HAFA was launched in April 2010 to provide an incentive to servicers and investors for pursuing short sales and deeds-in-lieu of foreclosure. The program was designed for homeowners who fell out of the Treasury’s Home Affordable Modification Program, or HAMP.

Servicers on the panel said they expect the changes in HAFA to encourage more participation in the program. Many borrowers, however, are still in a retention mindset when it comes to their home. If they are not eligible for foreclosure mitigation then we should focus on a “door-knocking” campaign to encourage a short sale.

The drop puts prices down at levels last seen in 2002. The declines stem from the expiration of the homebuyer tax credit in April, but with prices still falling eight months after that, the fundamentals of the market are more glaring: low demand is falling short of high supply.

The  estimates are 850,000 homes are for sale with another 4.5 million properties in the foreclosure

pipeline. This shadow inventory of more than 5.3 million homes will continue to push prices downward.

“We expect they will slide by a further 5% this year,” analysts said. “The danger, however, is that a vicious circle of falling prices and rising foreclosures pushes prices even lower.”

Distressed home sales, with an estimated market share at between 36% to 47% are a key contributor to the sharp decline as home prices fell in 18 out of the 20 MSAs.

What does it mean to be HAFA eligible?
HAFA, The Home Affordable Foreclosure Alternatives Program, is a unique program in which your lender and the government are working together to offer borrowers, like yourself, solutions that help you move forward.
If you are eligible, your lender will give you the green light to sell your home for less than you owe or will accept a deed-in-lieu of foreclosure. Selling for less than you owe is called a “short sale”.

The Advantages of HAFA Short Sale:

• $3,000 for Relocation Assistance
• Permission to sell for LESS than you owe
• Full release from liability and mortgage debt owed your primary lender
• NO deficiency judgment, NO cash contribution, NO promissory note
• Junior liens who accept incentives must also release you from liability
• No out-of—pocket costs for you to your real estate agent
• Streamlined review process
• Time to market the home
• Halt to Foreclosure proceedings

There are 8 criteria that must be met in order to be eligible for the HAFA program.

Eligibility Criteria:

1. The property is your primary residence and you currently reside in the home.
2. The home is a 1-4 unit home.
3. If you had to relocate, it was over 100 miles and in the last 90 days.
4. The unpaid principal balance on your mortgage is equal to or less than $729,750.
5. The first lien mortgage was originated on or before January 1, 2009.
6. Your monthly mortgage payment (including taxes, insurance and HOA dues) are greater than 31% of your monthly gross pre-tax income. (For help with this, begin by filling out the Financial Information Statement CLICK HERE)
7. The mortgage is delinquent, in foreclosure, or default is truly imminent.
8. You have been assessed for HAMP modification and were denied or failed to maintain the payments.

To get more information about this program to help you sell your home, please contact us via email or phone.  Your information is kept confidential. We work hard for you to help relieve some of the burden you are currently feeling and the services we provide are free to the home owners.

• How many bedrooms and bathrooms do you need? 
• What cities are you willing to live in? 
•  What is the maximum price you can spend? 
•  Do you want a house that is ready to move into, or one that needs a little TLC that you can customize? 
• Do you like city or rural living? 

The first place you should be searching for a home is on SacramentoHomeSale.com.  You will find thousands of homes for sale and lots of pictures.

The first thing you want to do if create an account for yourself.   This will allow you to save your search criteria so that you can check every day to find out what else is new on the market that fits your criteria.  when you create an account, you will get emails every day, automatically that let you know what’s new on the market, or new in your price range.

Narrow your search down by the list you made earlier to pin point the homes that fit the criteria you set.   You may find there are too many homes that meet your criteria and you can be even choosier, or you may find that you will have to widen your criteria to find more homes taht fit your needs and wants.

It’s important to keep in mind that your list has wants and needs.  As you go out and look at homes, you will realize what your true needs are and what your wants are.  It’s ok to compromise, especially when you are buying a home for a family.  When there is more than one person making the decision, it can get complicated.  Be sure that you discuss all your concerns with your Realtor.  Your Realtor has a more unbiased opinion about the houses.  When you discuss your likes and dislikes about the homes you have seen it helps your Realtor form a picture of what you are looking for and they can help you narrow down your search.

The first house you see is probably not the house you will buy.  Be patient.  The house you are looking for is out there.

•  
  • Support local businesses
  • You can physically can visit their office if they are not answering their phone

It is ok to shop around for a lender. Be honest when you talk with them – let them know you are shopping around. Each lender has different fees, there is no set standard that all lenders use.  While the fees add up, it is important to keep in mind that the fees are a small percentage of the total price you pay to borrow money.  Having a trustworthy relationship with your lender is more important than a few dollars.

There are also some important reasons to have a trustworthy lender.

1. They are going to have access to ALL of your financial information
2. They need to follow time lines set forth in your purchase contract
3. It will cost you  more money if your lender does not fund the transaction on-time

With every transaction we go through where a random lender who we’ve never heard of was used, there have been closing delays and poor communication which wastes everyones time and adds stress to the home buyers.  Be sure to get a referral for an experienced, full-time lender who can get the job done. 

Don’t be afraid to ask for more than one reference, and visit them at their office.  You deserve to work with professionals who are committed to doing a great job for you.

The Freddie Mac Primary Mortgage Market Survey reported the average rate for a 30-year, fixed-rate mortgage at 4.19%. This is the lowest rate the survey has recorded since its inception in 1971.

Mortgage rates were last at this level in April 1951, according to Freddie Mac.

The GSE said the average for a 5-year, adjustable-rate mortgage is 3.47%.

The Price is Wrong

This factor sits at number one for a very good reason. Pricing a home above its true market value in a tough market can cause irreparable damage to your probability of success. Pick an agent that a) doesn’t just pretend but truly knows the market and its intricacies and b) you trust (vital!). Use up all your skepticism in scrutinizing agents but once you decide, listen to their pricing advice and price it right or watch it sit.

Denied Access

How would you feel if you called a retail store or grocery store for an appointment and they told you to come by their place on Saturday between 1:30 and 2:15 because that’s when it would be convenient? Same concept applies to showing your home. All the marketing efforts creating awareness for your house are going to get Buyers very interested in looking at your home, but until they get to see it, there’s no hope for an offer. Lose lengthy prior notice requests, restricting showings to weekends only etc. Make your home as accessible as possible and maximize your chances.

Dressed for Failure

If the packaging on the candy is sloppy and uninviting, it is less likely to be picked up. The way your home is presented to prospective buyers is crucial in getting that signature on the dotted line. Lose the clutter, give every room a purpose and arrange the furniture to allow your home to show and shine. Or you can enlist a staging pro and have them do it for you, just like new home builders do. Staged homes sell faster and for more money. Presentation is all about giving Buyers a glimpse of what their life in the home might be like. What glimpse is yours giving?

Dysfunctional Changes

One of the beauties of home ownership is that one can customize the property to fit their lifestyle. But sometimes, irreversibly changing the structure of a property to fit one’s needs may impair its ability to sell fast. Probably the most common dysfunctional change Sellers make is converting the garage into living space. Another is to join two spaces and reduce the room count.

Lack of marketing

A well priced home with great access might not get a chance to sell if Buyers don’t know that it’s there. Especially in a market with fewer Buyers (lower demand) and plenty of other options (higher supply), marketing has to be world class. And no, putting it on MLS and putting a yardsign will not do the trick. An agent worth their salt will put the latest technology to work to take pro quality Wide Angle photos then weave them into virtual home tours, dedicated single property websites and property profiles that rock. Then they distribute them into portals where buyers are looking and uses their social media leverage on Facebook, Twitter etc. to get the word out. If your home is not getting this type of “spa treatment” you may have a marketing deficiency that a great agent can fill.

Not Ready for Showtime

Living in the property while trying to sell has its advantages and disadvantages. On the one hand, occupied listings tend to show better since the Seller’s furniture can help define the space. On the other, keeping a property ready for showtime can be challenging especially after a few months on the market. But I can’t stress enough how important it is for the property to show well in each and every showing. Remember, real estate is an all or nothing business: it feels like you have achieved nothing until you get an offer and it makes it ALL right.

Unreal Expectations

The Seller, the Agent and Reality all have to be on the same page for things to work out. Just like an agent that wants the seller to give the property away is out of line, so is a Seller that digs in their heels waiting for that Buyer and offer that’s not coming. If 99.8% of homes sold in your subdivision did so at a discount, chances are you’ll have to follow suit. You don’t have to trust your agent on this – just trust the market data he provides. Numbers never lie.

Deferred Maintenance

Unfinished projects, Necessary repairs and perpetually deferred maintenance can all be compensated by a reduction in price, but you will pay much more that way than it costs to actually do the work. Besides, the impression of a well maintained property is the ultimate sales pitch to most picky Buyers. So hire a handyman or DIY, but take care of those items and allow your home to sell.

So, there you have it: 8 Factors that keep homes from selling.  Your thoughts?