This probably isn’t news to our devoted Orange County readers, but I’ll put it out there anyway, Mathew Padilla over at the OC Register’s Mortgage Insider is reporting “bank owned homes sell slowly on the coast.” He lists a few reasons for this, one of them being that the loans on these homes are much larger, so banks are not
gung-ho about letting these homes go for bargain basement prices, “in other words, a bank takes a bigger loss if it knocks 10% off a $1 million-plus REO in Laguna Beach, than say 10% off a $300,000 REO in Fullerton.”
These same banks are also feeling stingier about offering financing on these pricier homes—Hasn’t anyone told the banks that they can’t have their cake and eat it too? Banks just aren’t well equipped for the business of selling homes; I’ll take an agent specializing in short sales over dealing directly with the banks any day. Not sure how to spot a great short sale? Our short sale site makes it easy to search by map, city or zip code.
Minda Reves is a freelance writer for SHORTsense.com