Foreclosure market update
A lot of concern has been addressed around the issue of foreclosures and our economy. Is all the the news accurate? How much inventory is on the market
currently compared to what is on the books? When is the moratorium going to be released?
Have we seen a decline in the bank owned inventory being put up for sale?
Currently there is more on the books than what is available for sale. Banks have recently began releasing more homes to on the market but they are being allowed to
flood the market with foreclosures up for sale. This ensures we stabilize the real estate market. This is causing multiple offers on homes.
We have seen as many as 96 offers on one home. The average home in the 200k range is getting approximately 15 to 20 percent more than list price.
Please do not think this is a market where you can offer thousands less and get your offer accepted. A few banks list the best price, and will counter with a best and
final with multiple offers.
How much longer will we see foreclosures as a dominate source of inventory for sale?
We have many years left where the banks will have no choice but to foreclose on homes. Banks are being influenced to work with home owners and attempt to
help them save their homes, but still there is only so much one can do. This problem stems from many years of offering bad loans to good people. It use to be if you knew
how to sign your name and had a 580 fico score, you could purchase real estate. Those days are long gone and let us hope they never return. There is still
billions of dollars left in adjustable rate mortgages and hybrid loans coming due. There are always statistics showing a trend.
- 1 out of every 200 homes will be foreclosed upon. For a city like Washington, D.C., that translates to 3,000 Washingtonians losing their homes to foreclosure each year.
– Mortgage Bankers Association
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Every three months, 250,000 new families enter into foreclosure.
– Mortgage Bankers Association
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One child in every classroom in America is at risk of losing his/her home because their parents are unable to pay their mortgage.
– Based on information from the Mortgage Bankers Association
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A slower real estate market can translate into falling prices and home values. As a result, homeowners who opted for adjustable rate mortgages may now find that as their
mortgage rate adjusts higher, their home value is lower and therefore refinancing is no longer an option.
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Six in 10 homeowners wish they understood the terms and details of their mortgage better.
– Freddie Mac/Roper poll of 2,031 U.S. homeowners, conducted 2005.
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More than 6 in 10 homeowners delinquent in their mortgage payments are not aware of services that mortgage lenders can offer to individuals having trouble with their mortgage.
– Freddie Mac/Roper poll of 2,031 U.S. homeowners, conducted 2005.
We believe in educating
Please, do not think you are alone and that there are not options possibly available to you. If you have any questions please do not hesitate to call us.
We do not charge, we do not offer loan modifications nor will we ever recommend any company to you. If you do not want to even give us your name, we do not care.
We will help you any way we can. We believe in americans helping americans.