Top Trends for 2010Wondering what the new year has in store for short sales?

Top Trends for 2010Wondering what the new year has in store for short sales?

While we don't pretend to have a crystal ball capable of predicting the future, a brisk review of notable experts indicates a higher than average likelihood of the following trends for 2010:
1. Evaporating Home Equity Loans - Already on the endangered list, home equity loans are expected to become nearly extinct during 2010. Only those with the best credit, most favorable home locations and superior credit can expect to be approved for generous home equity loans in the new year.

2. Growing Interest in Personal, Peer2Peer and Other Alternative Lending - Look for creative financing techniques to continue to grow as traditional bankers continue to tighten lending standards. Owner financing, peer to peer loans, hard money lenders and other alternative options to generate cash are expected to grow in popularity during 2010 and beyond.


3. REIT Exodus - If the recently proposed REIT tax bill becomes law, experts expect a rapid exodus from REIT's...a move with dramatic implications across the entire economy as some forms of REIT profits will be taxed as ordinary income rather than Capital Gains.

4. Favorable Interest Rates - Interest rates are expected to remain low for much of 2010 as the economy continues to suffer from a jobless recovery and weak dollar however, perhaps not as low as during 2009.

Experts expect interest rates to approach 6% for a 30 year fixed mortgage by the end of 2010.


5. Increased Incentives - From first time homebuyers to existing mortgage holders, keep an eye out for various state, federal and local programs and tax credits designed to encourage the purchase of property throughout 2010.

6. More Rules - From new RESPA rules to continued clarifications on taxes related to real estate, new rules are expected everywhere.

Short sale investors, bankers, brokers and real estate agents need to keep a close eye on ever changing documentation requirements to stay on the right side of rapid changes.

7.Steady Slowdown & Continued Declines - Don't expect a full recovery during 2010. In fact, even the ever optimistic federal government and central bank warn home prices are still declining and likely to continue their slide into the new year at least in some markets.

Other areas are expected to remain steady. Of course, every cloud has a silver lining - for short sale investors it simply means more buying opportunities.See you at the top!