Minnesota Short Sale Homes 1 in 6 Underwater now
It’s time to learn what a short sale is at this article: Minnesota Short Sale Homes
Have you read the latest article on MSNBC? http://www.msnbc.msn.com/id/27089919
1 in 6 now owe more on their mortgage then their property is worth.
This article is from Oct. 8th , 2008:
The idea of this is that it makes people feel less rich, the total opposite of the last 5-7 years and makes people want to shop less, eat out less, etc. As you probably know that most people can’t refinance the house because they get behind in payments or they simply don’t have the value or equity needed to refinance the property. Many choose to let the house go back to the bank. This will lower the price of comps in that neighborhood. For those who bought a home in the past 5 years, it’s estimated 29% of all homeowners are underwater on their homes. Meaning they owe more than the house is worth. The article reads as Minneapolis being back to 2004 price levels. I personally have seen many houses even from 2001-2002 selling for the same or less money.
The article goes on to read that “9.16 percent were a month or more overdue or were in foreclosure in the second quarter” , That’s a lot!
So the estimate is that 12 million homes are underwater right now.
Many people even think they have $5000 in equity still need to pay an agent commission when listing the house, holding costs, and other closing expenses. If you are behind on payments, about to be behind on payments, or clearly owe too much on your home, I have associates who can negotiate with your lenders and get paid by the lenders. They take care of the work. You hand in some initial paperwork and they do most of the rest just listing the house, taking in PA’s submitting to banks, etc. Selling your home on a short sale is far better than giving it back to the bank. If you can afford the payments and aren’t behind much you could rent it out for awhile, but if you are under water by a lot, you may not want to wait 5-10 years for the price to catch up, that is if you can’t afford the payments or your ARM is about to adjust. Health bills, layoff at work, loss of employment, death, divorce, these all cause foreclosures, it’s a part of life that many go through. You don’t have to be a foreclosure expert, we have those who are.
