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Short Sales and Foreclsures

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By : Jeff Stewart    99 or more times read
You’ve probably heard about short sales and foreclosures, especially with today’s real estate market. You can’t turn on the news without hearing about predictions and stats about the housing market. The ‘experts’ look at what’s going on in the real estate market as a gauge for the rest of the economy. It usually is a sign of what’s going on out there too, but you have to understand that every market is different. What’s going on in Arizona, Nevada, and Florida, isn’t the same as the DFW market. We are very lucky that our housing bubble didn’t get as inflated as some of the other places that I mentioned. That doesn’t mean we aren’t seeing a lot of what people all over the country are seeing though, short sales and foreclosures.

When you have a mortgage on a property, then you have a lien on it. If you used Bank of America to finance your home, then Bank of America is the lien holder on the property. As long as you abide by the terms of your agreement with Bank of America, then all is well. You are allowed to live in your home, you make your monthly payments, and in 15, 20, or 30 years, that baby is yours free and clear! Well, what happens if you stop paying your monthly payments? Then you might be looking at a foreclosure, because the lien holder on your property either wants their money, or they’ll take your house back as collateral.

As you might imagine, a foreclosure is devastating to one’s personal credit and credit score. In many cases, you won’t be seriously considered for another large loan for 7 years or more. It’s a tough road to come back from, but one, more and more have faced with the number of foreclosures rising. The fact is that many people facing foreclosures today got into loans and houses that they never could have afforded to begin with. Others have lost jobs or bought homes that have gone upside down in value. It’s a sad thing to see and hear about, but it is a fact of life, and a fact of the real estate market. How does this affect buyers and sellers though?

If you are trying to sell a home right now, you aren’t the only one. The fact is that there are a lot of homes on the market. Many of them foreclosures and short sales. A short sale is basically called a ‘pre-foreclosure.’ It’s where the bank or lien holder decides to take less money than what you owe on it just to sell it and avoid the foreclosure process. Our current government has been very vocal about banks doing things like this to avoid the devastating effects of foreclosures on people and their credit. If you are facing the prospect of not being able to make your monthly payments, talk to a Realtor today, and don’t wait things out. You might have options to avoid a foreclosure.

For buyers, there are some great values out there. The number of homes on the market has made much more supply than demand. When that happens, we shift into what’s called a ‘buyers market.’ You can get a lot of house right now for your money, so it really is a great time to buy. Interest rates are the lowest they’ve ever been, and there are some great properties in the Lake Ray Hubbard area that are a great value. Whether you are first time buyer, or a distressed seller, or just an interested party; take time to talk to a licensed Realtor about your options. You might find some good news about your situation, even in today’s ever changing market.

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