TriStateMixer is the Largest Real Estate Investment Association in NY, NJ, & PA
In my previous post, I put out some thoughts and observations of the current market and "Short Sales". As the overall Economy deteriorates (remember by one measure unemployment is 9.6% and when you throw in the under-employed,it's 17%+ ) the Banks are going to feel even more pressure with ever increasing defaults.The threats of Forclosure litigation against them is a huge problem. To absolve themselves,they would rather have the "Distressed Homeowner" deed the property to the buyer.This will get them off the hook.
Remember,the Banks are large multinational corporations that answer to stockholders, they need to make their quotas and quarterly numbers.You will start to see a push from the banks to close on the "Shorts".Problem is...the banks and many real estate brokers in their infinite wisdom have made it extremely difficult for investors to buy.For some reason they seem to only want to deal with homeowners(which have really dried up).Perish the thought that you may make a profit off their poor loan decisions !!! Its like a person in shark infested waters holding on to a bar of gold as he's sinking and refusing to hand it off to the person holding a life line.He rather sink or be eaten then let the person trying to save him make a profit. BofA comes to mind with their 30 day re-sale restrictions. Now the point of this blog was to explain why I think "Shorts" will become more profitable, In my next blog,I will suggest some strategies and tactics