Get ‘em before they’re gone!

CNBC Real Estate Reporter Diana Olick today reports that bank-owned foreclosures (also known as REOs) and short sales — both of which fall under the distressed real estate umbrella — accounted for nearly 50 percent of all home sales in Dec. 2010.

The 47 percent share is up from 44.5 percent in Nov. 2010.

Low interest rates, as well as delayed sales agreements that were finally pushed through after “robo-signing scandal” concerns were alleviated, are the primary reasons behind the major spike.

Thomas Popik of Campbell/Inside Mortgage Finance explains:

“There were signed purchase and sale agreements, and those closings were delayed until the paperwork was reviewed. The major servicers pulled from the market houses that had been listed, and buyers were found. Once those transactions went back on, then they closed, and that’s what bumped up these December statistics so much.”

Keep in mind that home sales are typically down during the holidays, which makes this news even more remarkable because real estate business was actually up 12.3 percent (seasonally adjusted) to close 2010.

To search foreclosed homes and short sale listings for sale in your area click here.

Be sure to hurry … the distressed real estate market is fast and furious. The best deals don’t last long!

About 27 percent of American homeowners feel that prices will continue to drop in 2011, according to a Gallup poll conducted earlier this month, which is compared to 21 percent who feel they will finally begin to increase.

Check out the graphic below, entitled “Expectations for Average House Prices:”

Consumer confidence and attitudes are often telling indicators for if, and when, markets will rebound, correct and/or continue on their current trajectories.

This is “good” news for potential buyers and investors — great real estate deals could possibly get better in the months ahead. Historically-low interest rates and other buyer-friendly conditions, however, could start retreating to so-called “normal” levels sooner rather than later.

For buyers looking to push their chips into the middle of the table at the right time, this is turning out to be like a game of chicken. When do you flinch and go “all in” on the house of your dreams?

Each case is different, so there probably isn’t s silver-bullet answer to the age-old question of when to buy. Keep in mind though, that the line is getting finer by the month. And when the correction comes, it will likely come hard and fast.

Don’t be the one on the outside, hanging onto your bag of chips and kicking yourself for not acting sooner. Watch your local market, sign up for our free property email alerts and stay on top of things as best you can.

It will likely payoff in the end … literally.

Stubborn distressed homeowners. Possible legal wrangling. Skeptical secondary post-flip buyers.

These are now all major concerns for cash-laden real estate investors who were snatching up foreclosed homes from banks, renovating and then re-selling them for profits several weeks later, according to CNN.com.

What happened?

Several major banks recently put the “freeze” on foreclosure sales to investigate improper “robo-signed” paperwork. There were legitimate concerns that homeowners were evicted carelessly and perhaps even fraudulently in assembly line-like fashion.

The good news is that the banks have began correcting their mistakes, which were overall relatively minor. The bad news is that it has freaked out investors, which were propping up an unstable housing market, and in the process, rehabbing community eyesores.

This about sums up the situation:

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Buying Fannie Mae-owned homes just got easier.

The largest mortgage buyer/backer in the nation recently rolled out HomePath Online Offers, which gives real estate agents the power to submit bids on behalf of clients who are interested in buying foreclosed — also known as Real Estate-Owned (REO) — homes.

Buyers/investors in Orlando, Fla., San Diego, Calif., and Detroit, Mich., will be the first to test out the new program.

Jim Tiegen, Vice President of Fannie Mae’s REO regional offices, had this to say to DSNews.com about the innovation:

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… because without sales of homes in distressed areas the “recovery in the housing market stops. It’s frozen,” according to White House Press Secretary Robert Gibbs.

He elaborates (via CNNMoney.com):

“That obviously can have — we believe and others believe — a very negative and detrimental impact to our economic recovery efforts and the housing markets in states that have been hardest hit.”

Of course, foreclosures are a last resort — loan modifications, short sales and all other rescue options should be exhausted before sending properties to the auction block. Additionally, the documentation process needs to be as accurate as possible, which is an issue that several major lenders are addressing right now during the “foreclosure freeze.”

Despite the “freeze” from some lenders, foreclosures are still for sale throughout the nation. And most of them are available to purchase for significantly less than market value.

The fact of the matter is that foreclosures need to happen “for there to be a full housing recovery” and because they are “an important part of ensuring longer-term stability in the market is to enable properties to be resold to families who can afford to purchase them.”

To search foreclosed homes for sale in your area right now click here.