SHORT SALES AND FORECLOSURES
Short sales and foreclosures are not new trends in real estate, but current economic conditions, rising rates of unemployment, and depressed home values in markets have caused mortgage defaults, short sales, and sales of foreclosed and REO (Bank owned) properties.
Here are the stats:
- 1st quarter 2009- 12.07% mortgage defaults and loans in foreclosure(Mortgage Bankers Assoc)
- 1.9 million foreclosure fillings recorded in first 6 months of 2009 (Realty Trac)
- 1/3 of existing home sales in July 2009 were short sales and foreclosed properties (NAR)
For home owners the loss of their home, loss of equity, and damage to their credit can lower the score by 200 points or more and it remains on the history for seven years.
The neighboring homeowners can experience declining home values and loss of equity as well. There is increased risk of vandalism and theft in the neighborhood.
The surrounding community also experiences declining home values, reduced taxpayer base, and increased possibility for vandalism and theft.
Before you cave to a foreclosure, and ruin your credit, it might be beneficial to research short sales and sell your home for less than what you owe.
Denice at Brandes Realty LLC can help you! Call 719-439-5157.
