Since April of this year, every San Diego real estate agent, investor, loan officer and title/escrow company has noted that real estate inventory in San Diego has diminished significantly.  We spoke with one escrow company that does virtually all the closings for REDC, a large auction company in regards to this matter.  Her response was that business was down about 40% since April.  Banks appear not to be releasing their inventory.  Thus San Diego short sale listings are selling like hotcakes.

 Diana Olick, a CNBC Real Estate Reporter, reported an interview with Bank of America/ Countrywide on whether or not they are holding on to their bank-owned properties.  Here is how they responded (as summarized in her report):

Bank of America – Countrywide: 

• Foreclosure sales have been abnormally low since we learned of the pending implementation of the administration’s Making Home Affordable program. From that point, we delayed the initiation of foreclosure proceedings and sales for customers that may eligible for a loan modification under MHA. As a result of this policy, our foreclosure sales in recent months have been as little as half the normal pace we experienced before.
• Until a foreclosure is completed, Bank of America continues to exhaust every possible option to qualify customers for modification or other solutions.
• Now that Making Home Affordable programs are operational, we do project an increase in foreclosures as we exhaust every available option to qualify customers for modifications and other solutions.
• While we have very strong loan modification programs now available, unfortunately, these foreclosure projections reflect the increasing number of customers who will not qualify for loan modification because they have suffered major life events servicers can’t solve…primarily unemployment and underemployment.
• We do not hold foreclosed properties off the market. The vast majority of mortgages serviced by Bank of America are owned by third-party investors. We have an obligation to them to prepare foreclosed properties for market and sell them as efficiently as possible.

 According to Ted Jadlos of LPS Applied Analytics, “Based upon foreclosure and REO timelines, it’s going to take at least 18 months to flush the system of our current problems. But to flush the problems in only 18 months, more problem loans need to leave the system relative to the new problem loans of today and tomorrow. That does not appear to be the case right now—we aren’t clearing faster than new problems are emerging.”
We feel that Bank of America – Countrywide is not exactly being above board on their “politically correct” response.  We know of many San Diego and Orange County homeowners who are not in a loan modification, haven’t made a mortgage payment for over 10 months, an still have not received a notice of default. It’s a great time to get out of your mortgage and your debt through the short sale of your home in San Diego.

Call us at 1 (619) 631-4546 to get started today!