Single Family Asking Rents
We’re finding many single family investors are not privy to single family rent levels and tend to over estimate attainable rents. We track rents monthly and find many initial asking rents are unrealistic. Below is an asking rent distribution for Victorville. There isn’t much change in the curve from May ’09 to September ’09, however, the latter sample is smaller suggesting supply is being absorbed.

2-4 Unit Closings Continue Upward Trend

Apple Valley sales volume reached 3Q ’06 levels, however, the average price per unit for 3Q ’09 was about 75% less than the 3Q ’06 figure of $141,643. We noted that pending data indicates higher unit prices going into Q4 ’09. Prices generally rise with sales volume.

5+ Unit Market Still Needs Life Support
Sales volume is pathetic due to a lack of lenders in the area and high asking GRM’s.

Unemployment Rate Eases but...
The area unemployment rate dropped in September but job losses continued. These figures are not seasonally adjusted.

Short Sales For Struggling Owners
By: Ted Grose, CEO First Mortgage Advisors

Lately, we’re finding lenders are more receptive to short sales on non-owner properties. They’re not easy. They require constant contact, attention and patience.

Some advantages of a short sale over a foreclosure are:

• Short sales are a little easier on your credit in that a foreclosure is a matter of public record. A short sale deficiency is not public record thereby helping the borrower to avoid the stigma of a
foreclosure. However, many experts agree that when it comes to your credit, the seller will probably take an immediate 200 to 300 point FICO score hit.

• If you’re an investor, most non-owner loans in California are recourse loans. In many foreclosure scenarios, the lender can go after the seller for a deficiency. In a short sale, there is generally an agreed pay-off amount saving the borrower from a deficiency.

• The seller has more control over the sale process in a short sale.

• With a short sale, you will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.

• According to About.com Guide to Home Buying / Selling, “If your credit report does not reflect a 60-day+ late pay, under Fannie Mae guidelines, you will be eligible to buy another home immediately.”

You can’t just ask for a short sale and get it. You must prove your hardship to the lender. Among other things, the lender will require a hardship letter, financial statements, tax returns, and
pay stubs. For more info: Ted@1stMortgageAdvisors.com