May 15th, 2011 8:16 AM by Eric Fang
What a week! There are four short sale needs to beclosed in the past week. But there are a lot of extra work because of the new regulation changes,the most important one is that we can not extendthe rate after the loan docs prepared.
Here are some info of the purchases for the reference:1)San Jose 95123. Purchase 460k. 3 Bedroom,2 Bath with 1500 sqft. The interest rate is a little bit higher because the market rate washigher then and also because it's the 5th financedproperty. Rental income $2000. This one is not cashflow positive. It's negative of raound $400.
2)San Jose 95129. 750k purchase. 4 bedroom, 2 Bath with 1600 sqft. PITI around $3400 with rental income $2450. Cash flow is not good either.
3)West Sacramento 95691. Purchase Price 290k 3200 sqft with 4 bdrm 3 baths.
4)Riverside 95208. Purchase 250k. 3bdrm 2.5 bathwith 2400 sqft.
Just got a report this weekend, for most of the areasin USA. The house will head lower. The low interest ratewill not help those with house price is underwater.And some of them will choose strategic walk away.Also, the appraisal will choose "lower" valueson the market will kill the RE recover as well.
There are some opinions about allowing the current homeowners to refinance lower rate no matter of the property value. But there are a lot of difficulties,especially the investors(the bond buyers) will not agree.
So there is no easy solution for the RE recovery yet.