Finally, a whisper of decent economic news! Key economists are reporting that the real estate market is showing signs of recovery and it could be that the worst is behind us.
According to the fourth quarter report from Capital Economics “Prices appear to be reaching their trough, visible supply is on the decline, and banks are beginning – just slightly – to loosen lending standards”.
We believe foreclosure property doesn’t do anything good for anyone. It hurts the owner, the banking industry, the mortgage industry as well as having a negative impact on the neighborhood and community where the foreclosure takes place.
A foreclosed property can damage real estate values and multiple foreclosures on any street or even in a neighborhood can drive property values down, hurting neighbors and having a far-reaching negative impact.
The best solution? The short sale, by a long shot. The short sale is a natural tie-in with market recovery as it contributes positively to the economy. Think about it for a moment. The abandoned house decreases its’ value and the value of nearby homes. It hurts the housing market and is bad for local businesses– it affects the tax base of the city or town. It’s just bad news all around.
By contrast, the short sale keeps business moving the way it should – the way it would in a healthy economy. Why? Because property moves. It changes hands and gets kept up, maintained and retains current value.
Let’s start with the real estate professional. Using the short sale option means more houses to sell. Working with a company like ours means you have to do less work to make the deal a reality. More closings, more commissions and a healthier personal economy. That’s a start.
Let’s look at the family that was threatened with foreclosure. They can sell their house, keep their credit intact and if the deal is done correctly, these days they have a good chance of walking away with a chunk of cash that will not only make them feel better about losing their equity. Let’s face it – they probably accepted losing any equity they had long ago – but walking away with cash goes a long way to helping a financially strapped family get settled again. And, with a short sale, their chance of getting back into home ownership is significant.
Now, look at the lenders. The last thing they need right now is more foreclosure inventory on their books. It’s never going to be their top priority and the neighborhoods and streets where that property sits suffer – not to mention the property itself. Lenders are motivated to keep the inventory moving.
The short sale transaction can be involved and it helps if you know exactly what to get to the bank and when and what to follow up on and at what point, so that the deal goes through and it happens smoothly and easily.
That’s what we’re here for. Consider working with Short Sale Experts to make your short sales a reality, your clients happy and to contribute to getting our economy back to sanity. And, it will help your bank account in the process. We’re all about win-win.