Friday, June 25, 2010

Rates Worse; Short Sales Statistics - Short Sales Still Take Forever

30 Year Fixed Rate Loan at a Cost of One Point: 4.5*

Rates got worse yesterday, as they often do soon after they hit a trough. We had many borrowers asking if we thought "rates would drop down to 4.0%", and we would respond: "no; we think it is more likely that they will bounce back up after dipping so low". And, bounce back they did. When rates hit a "low", it is advisable to lock soon, and to not try to "time the bottom of the market".

If you are nursing a "Short Sale", continue to expect long wait times. Legislation intended to speed up short sales apparently is not yet working. Deutsche Bank published a study of short sale turn times with various different servicers. GMAC is fastest with an average approval time of 6 months. Citi takes an average of 7.5 months to approve a short sale. And Wells takes 8 months. B of A takes an average of 13 months. And it only gets worse for subprime servicers. Here is the link to the article: ShortSales

Jay Voorhees and Heejin Kim at (925) 855-4491

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