I would consider Temple City fairly immune to the general downward pressure facing the overall real estate market. The demographics and good public school system provide a strong level of price support for real estate, so it doesn’t surprise me that there are a relatively small number of properties in foreclosure.
Out of 71 active listings in Temple City right now, 6 are advertised as short sales. That’s just a little over 8%. In some areas of L.A. County, the numbers look something more like 25-30% (like the Antelope Valley).
So, you’re a buyer interested in taking advantage of the price pressure and FHA loan incentives . . . should you go after these short sales? Wouldn’t they be a great way to get a cheap property?
Maybe, maybe not.
Once in a while, someone gets a really good deal on a short sale, but generally, the banks will not approve anything less than 92-95% of appraised value, and they won’t credit you for repairs, or pay for termite or home warranty. And you need to be able to put your loan together in less than 30 days.
But still, because many buyers and their agents don’t like to deal with the short sale process, it might be worth going for it. After all, potentially getting a property at 5% below market isn’t bad, especially in an area like Temple City. You just need to be patient and have an agent that understands the process well.
And in regards to the new FHA guidelines intended to help boost the mortgage and real estate industry, you need to read an insightful and informative post by Pasadena real estate agent, Irina Netchaev: Distressed Market and FNMA Announcement. The new loan programs are great, but you need to make sure you understand the whole picture. Things are shifting fast.
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