Major Banks Stretegy on Foreclosure

Of the ten worst real estate foreclosure market published by Forbe’s magazine, 2/11, California rank #2 in the nation, cities like Stockton, Sacramento, Fresno and Riverside are all among the top list.
On the contrary, in the Valley, we are still taking multiple offers in famous sought after schools areas like Cupertino and Palo Alto in Santa Clara County.

Bank of America, Citigroup and other major U.S. banks and lenders announced yesterday, 2/12  a revised a plan to help the borrowers solving their troubled loans. The plan basically give those borrowers extra 30 days to work out new deals with lenders to sustain their loans or start new loans. Rather than having houses foreclosed in the market.What the real statistics will reveal, we actually don’t know, until another write-down news hit the market? Which in my belief, I think it’s very likely to happen. The lenders actually do not want bad loans in hands, and they are willing to bend and let borrowers to catch a breath and keep on living the life as it is.

Will this strategy works? Let’s sit on sideline till the end of this quarter. Actually, when spring season’s stats in by the end of June, we’ll have better picture of the entire credit situation. 

For Silicon Valley, my prediction for the season is going to be slow, however, the big question as to will there be a melt down?  Let’s just wait till the stats come in.

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