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2nd “Wave” of Foreclosures; Gift Funds Again

1 million foreclosures are expected this year in the so-called “2nd wave”. This one is supposedly caused by unemployment and it involves more “A Paper” loans instead of “sub prime”, but it remains our observation that it is “negative equity” that sparks the most foreclosures. The upside to all the foreclosures: All of these houses have to be sold, meaning transactions for us, and more inventory for our buyers.

Gift Funds (for down payments) should always be transferred directly from the donor to escrow. Running gift funds through a buyer’s account creates all kinds of “paper trail” issues. One of our best and sharpest Realtors yesterday stopped her client from getting gift funds too soon from her Mother, saving us all a ton of paperwork hassles.

Call Jay Voorhees at (925) 855-4491

Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646