Short Sales in Northern SLO County --

  Short Sales are listings where the asking price is less then the amount owed on the property and any sale is subject to the lender(s) agreeing to take less then the unpaid balance on the existing loan.  So far this year, in 2011, 17% of the closed escrows in the Northern SLO county have been short sales.   However, as I reported last week,  only 56% of the short sales that went into escrow in the past 11 months successfully closed.  Now, although that means there is a 44% failure rate in short sale escrows, that is an improvement over the last few years.   Banks have realized that they have a better return and less costs in a short sale then they do after foreclosing on a property and have become more realistic.   Why then is there still a 44% failure rate?   Here are some of the reasons: 

FORECLOSURE & SHORT SALE ACTIVITY IN THE NORTH COUNTY-  As of 11/18/11 of the 460 unsold homes now on the market in Northern SLO county, 9% are bank owned (REOS) and 10% are "short sales " (where the borrowers  still own the property but the asking price is less then the amount owed on the property and any sale is subject to the lender agreeing to take less then the unpaid balance on the existing loan).   

  Of the 280 homes now in escrow (Pending Sales)  or with accepted offers waiting for final lender approvals,  21% are bank owned and 41% are short sales.  The reason for the higher number for short sales in escrow or waiting for bank approvals, is that the time periods for bank approvals for them and the closing of their escrows is about 4 times longer then a traditional or bank owned sale.   

   What percentage of short sales actually close escrow?  For the past 12 months 56% of the short sale properties listed for sale actually successfully closed escrow.  The main reasons short sale escrows can fail ?-- tune in next week for those answers.  

Beau. Oak Studded Westside Templeton Acreage -

- This app. 15 acres in the Santa Rita Creek area is close to town but is very secluded. Newer barn with cement floor and power, 1 Acre Zinfandel Vineyard and well. To see the virtual tour and more info, go to http://www.timbryan.com/listings/index.php?listing=174170

OCTOBER NORTH COUNTY REAL ESTATE STATISTICS

- Sales of all North County real estate types decreased 12 % in October over September but are 10% over October of last year.  Sales for the first 10 months of this year are also now up 18% versus the 1st 10 months of 2010. Properties in escrow are up 5 % from last month and up 26% over October of last year. Active listings on the market are down 14% when compared to the same time last year. Northern San Luis Obispo County real estate sales are still improving versus other areas of the country.