As I mentioned in a previous article I think the banks are sitting on inventory to keep from flooding the market any more than it already is, this time I looked up the info.

I looked for notice of defaults filed this year on 5 East Side zip codes 84020, 84092, 84093, 84094 & 84121 with an assessed value of $400,000 or more and there are over 200. I think we have a steady supply of deals in that price point for some time to come.

This is creating an interesting market conditions. The biggest demand we have in Salt Lake County is entry level. Let’s look at the opportunities that are being created. The deals seem to be in the high $300k and above. The $250,000 and below is starting to break a seller’s market. I don’t mean a seller’s market where you get 10 offers in 3 days and 5-10% above list price. I mean just the other side of neutral where the seller will not take a beating and will get within 3% of their asking price. Still seller’s market. So the $250,000 and below seller is now the $350,000 and above buyer. So they can sell fairly easily and in a reasonable amount of time as long as they are realistic on the price and move into deal territory.

See What Makes A Buyers Market or a Seller’s Market

I am seeing less new Luxury Foreclosures come on the market and it seems like arms length sellers are starting to list more luxury homes. Frankly I am not sure why, they are listed at about twice as much as the bank properties. Banks are listing them around $100 per foot +/-, where local folks are up to and over $200 per foot.

I still think banks are sitting on more inventory and will only drip in the supply so they don’t drop further.

Welcome to Salt Lake Luxury Foreclosures a web site dedicated to Salt Lake Luxury Foreclosures.

Here you will find Listings that have been foreclosed and are in foreclosure and listed for $400,000.00 and above. If there is a listing that is below that it was at least $400,000 and the bank has since lowered the price.

You would think in this day and age that getting a list of foreclosures that were current and accurate would be simple. BUT NOOOO. I it is actually an arduous process. On a daily basis, I get a report of all new listings in Salt Lake County that are $400,000 and above. I go through each listing to see if it is bank owned including checking the county record and then I change the string of the url that makes the search for you. So if you were thinking so what, I hope I have enlightened you to what is before you.

Thanks Rob

This is good news for Salt Lake Luxury Home Buyers.  Interest rates are in the high 5’s (which is an awesome rate), and the basic criteria is a FICO score of 720 or higher, a 20% down payment or more,  full documentation of income and asstes. Full Appraisals, sometimes two and enough assets in reserve to cover a minuimum of 6 months payments.

To find out more about jumbo loan products contact me today at voice or text 801-694-4762 or you can email me at Rob@Aubrey.net

PS Don’t forget tthe link on the left you can preview Salt Lake Luxury Foreclosures including tours and addresses.

The other thing we see are incomplete short sales. These deals bring along a set of risk that have to be addressed. That is mechanics liens. If you are not familiar with a mechanics lien, they can date back to the day work started or materials were delivered.

A mechanic’s lien may make it difficult to finance or at least difficult to get a lender’s policy of title insurance. It is possible for unscrupulously contractors to file mechanics liens without having any right to.  The idea is you would have to fight them or pay them.

With that said I believe the value of an incomplete short sale is today’s land value. If it significantly finished, I advise the bank foreclosing, thereby wiping out any potential liens and moving forward.

Of course all bets are off as to what an underwriter is thinking these days. There are price adjustments for everything, fro example on a 30 year fixed less than 20% down will cost a point, below 720 FICO will cost a .25 point and so on.

But there are still really good loans out there and there are certainly good buys.