How To Get The House Market To Work For You vs. Against You

How To Get The House Market To Work For You vs. Against You

Some of you may have read or heard on the news about the investigations into the foreclosure processes of several of the largest mortgage servicers. The investigators are looking into the validity and accuracy of the foreclosures that have taken place over the last few months and years. Apparently, there are suspicions that shortcuts were taken by the servicers that had millions of defaulted loans. The problem is that the servicers were unprepared for the volume of defaulted loans to deal with, and they were scrambling to address the defaults in bulk instead of reviewing each situation individually. Due to the investigation, some of the servicers have halted any further foreclosure proceedings (many of these have started the proceedings back up).

What does that mean for you? Well, if you are currently in default, it could mean you will be able to stay in the house for a little longer. But for sellers who need to sell now or who will need to sell in the next few years, it could be bad news.

The result of servicers’ decision to suspend foreclosures will simply delay the inevitable. These foreclosures will happen eventually, and the distressed properties will need to be sold. This action is just keeping distressed houses on the market longer. So, if all these houses were on the market in a smaller amount of time, prices would be extraordinarily low, but for less time. It’s essentially just biting the bullet and getting this price decline over more quickly. Maybe in this scenario, we could see price increases in the next two years; whereas with the current developments, it could be five or six years before the market picks back up.

If you’re a victim of the current declining market or foresee difficulties in selling your house in the near future, give us a call today. We’ll see how we can help you make the market work for you instead of against you.

Melissa

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