California Short Sales, Foreclosures, REOs Los Angeles, San Diego, Riverside & Orange County Short-Sales Listings

29 Oct 08 Welcome to the California Short Sale Market

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The early 1990’s saw quite a few short sales in California.  A recent home sales report from Sacramento and San Diego indicated that short sales transactions were on pace to shatter previous records. Most people would agree that home prices have been inflated for some time.  Is anyone really surprised that California housing bubble bursted?  

Creative financing promoting negative amortization and interest only mortgages certainly did not help matters.  With these risky home loans, homebuyers had more purchase power because $5,000 a month would help buy them a home priced in the million dollar range if they financed with an option ARM.

Greenspan continuously lowered interest rates and this paved the road for the new era of American real estate.  Builders raced the growing housing demand and housing construction exploded. Investors began to speculate in real estate and home values grew and grew, just like the stock market did in the late nineteen ninety’s.

The short sale market increases when the demand to sell home increases, but borrower owes more than their property is worth because the market is declining faster than anticipated.  Thousands of California homeowners are trying to dump their homes because they can no longer afford their mortgage payments.  Welcome to the short sale market in beautiful California.

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