A couple of months ago I researched the short sales available in Folsom Ca and 64% of all homes available were in a short sale status. Today I ran the same search and the statistics showed a significant decline to approximately 29%. So what happened? I surmise it has a lot to do with the increase in affordability and the low interest rates, not to mention the $8000 tax incentive that will expire on Nov 30, 2009. Keep in mind that the money set aside for that tax incentive is limited...it's on a first come, first serve basis. I recently heard that close to 1/4th of that pool of money has been spoken for so if you're considering a purchase you better get moving!
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