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The Impact of Foreclosures on Seconday Homes for Sales

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By : Julie Thompson    99 or more times read
Real estate business activity is one, where the minimum saving or loss in a home sales deal would amount to thousands of dollars. People buy or sell a housing property not everyday and for most of them it is one-time-in-life affair. So unless there is dire necessity to part with their home, no home owner in his or her prudence will put their property in the market for sale. There is nothing unfair in a home owner expecting the right price, the fair value of their property as per market standards that is, while disposing the house. Unfortunately this is not the case for millions of home owners in US, due to the impact of the ongoing crisis of foreclosures in the country.

The foreclosure properties are flooding the market in millions over the last few years. In most cases the home owners have been compelled to forfeit their properties to foreclosures, due to circumstances beyond their control. All of a sudden the US economy slid downwards and brought forth disastrous consequences in the financial circles and Real Estate business activities. Result is millions of homes were foreclosed by the mortgage lenders for default in repayment.

The huge availability of good and affordable properties under foreclosure, made available for a fraction of their real value, hit the home owners of secondary homes in not getting their asking price. As such the secondary homes for sale are lying with the Real Estate Agents in MLS Listings; FSBO categories and Flat Fee Brokerage arrangements, for months.

Therefore the market for secondary homes for sale has changed dramatically into a “Buyers Market” – a phenomenon totally new to US Home owners. To mitigate the grievances of these pathetic home owners, the Government is taking many steps including lowering the mortgage interest rates to enthuse home buyers to embark on home buying activities. Towards foreclosure properties also, they have announced the Troubled Assets Recovery Program together with other steps like free consultation, help for avoiding foreclosure with the mortgage lenders etc.

However the situation is still fluid with many American families suffering – on the one hand the home owners venturing their secondary homes for sale faced with home prices not stabilized and home buyers are sitting on the fence for still better interest rates before they act.

But one brighter aspect is many secondary homes in primary locations and Real Estate hotspots are available for home buyers at prices they could never before imagine. Single family homes, multi-family residences, condos and other housing properties with best amenities and conveniences, can be bought with best bargains in sale prices through MLS listings, FSBO categories and Flat Fee Brokerage arrangements now.

So it is a very lucrative proposition to act upon for first time home buyers to select their dream property from any one of the above listings for own occupation and peaceful living. For investors also they can buy the properties now when the prices are low – either for selling them high when the Markets turn up or get a steady monthly income by renting them out.

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