3 Real Estate Market Challenges to Tackle Throughout the Year

If you made adjustments and found some stability in 2009, then you’re probably seeing—and can expect—more of the same this year. If you struggled last year, it will likely get harder unless you’re able to adapt to the market as it is. As you continue to power through and find new ways to work in a changed economy, stay aware of these challenges at the forefront and seek out resources that could positively affect your ability to serve your clients.

Short Sales
The U.S. Treasury Department’s new guidelines on short sales, announced in November, include better protection for you and the consumers involved. The policies represent a good step forward, and they’ll prove to be even more so in April when banks are required to have a compliant short sale plan in place to participate in the Home Affordable Foreclosure Alternatives (HAFA) program. The rules for participating banks include a 10-day window to accept or reject offers and a $1,000 incentive for each closed short sale. However, the most valuable currency for negotiating short sales will remain a competitive offer and a complete, well-organized short sale document packet for the servicer.

Loan Modifications
Unfortunately, loan modifications are being implemented at an extremely slow pace. The Obama Administration reports that in 2009 only 66,000 loans were permanently modified, a tiny portion of the more than 900,000 submitted for consideration. With 350,000 properties defaulting each month in the U.S., it’s in everyone’s best interest to keep people in their homes and their properties off the already flooded market. And if job growth occurs as promised in 2010, loan modifications may be viewed as a good fit for people who are getting back to work and have enough income to keep current on their mortgage.