Thursday, February 12, 2009

$7500 Tax Credit - San Fernando Valley

Stimulus Advances With Tax Credit Changes
The $790 billion stimulus package hammered out by House and Senate conferees late yesterday afternoon drops the repayment feature on the home buyer tax credit

Foreclosures on Hold While Stimulus Crafted
Home foreclosures are slowing as lenders wait for Congress to approve the stimulus package.

Richard's notes: I do believe that the number of San Fernando Valley foreclosures (bank owned homes) is 10-15 times greater than what is displayed in the Realtor MLS system and what is considered available 'Active'. What this means is that REO agents have been instructed to not expedite the eviction process thus reducing the number of available bank owned homes on the market.

I believe the banks with the financial backing of the government, are preventing home prices from falling further by not saturating the marketplace with bank owned homes. Realtors seem to be gunning for bank owned homes rather than short sale homes because the success of a closed escrow is higher.

Real estate agents who specialize in listing bank owned homes (REO agents) seem to be pricing the homes to sell within a week.

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