I’m not usually prone to commentating about the economy, or the sub-prime meltdown, or any of that stuff. But recently I’ve seen a very significant increase in short sale related traffic/e-mails to my little blog here. This is not good news. I wrote about this a few months ago, wondering if the surge of short sales was coming….It’s definitly here.
As more and more homeowners face foreclosure, many will hear about short selling their house, like I did. So will 2008 be the year of the short sale or the year of the foreclosure? I’m hoping for homeowners sake it will be the year of the short sale. Successfully completing the short sale on my house, and avoiding foreclosure was one of the highlights of my financial journey this year.
I wrote a “short sale advice” type post if you’re looking for advice and tips about short selling your home.
{ 3 comments… read them below or add one }
DK you know that people resort to short sale to avoid foreclosure because they can’t afford the house? The value of the house and what you paid for it doesn’t affect your ability to pay the mortgage on it. If your mortgage payment were to go up because the rates adjusted, it will become harder to make the payment. There’s nothing wrong with the normal housing/mortgage market.
The issues going on right now are builders have overbuilt and there’s so much inventory on the market, and banks were offering ridiculous loans to people who could not afford them. Builders get a project off the books and banks get another loan through the door. As people couldn’t afford these loans, the foreclosure and short sales have finally caught up to the banks and their shady practices.
Sub prime is a buzz word that the media wants to keep pushing to make our economy sound worse off than it really is. The markets go up and down, houses gain and lose value, people plan and life happens. You are lucky that you were able to get a short sale done and avoided foreclosure. The banks look at people more aggressively now before they loan them money.
Wow, the media trying to make the economy sound worse off that it is.
I guess it depends on how you judge the economy, I’d offer a wager about it except I’ve already taken one via my “avoid the US” investment choices…
I have disagree with Jim on this one.
The housing market is in terrible shape ~ and it won’t turn around anytime soon. 50% of all houses purchased in the last three years were bought with with a downpayment of 5% or less. With houses down 10% all of theses houses are underwater. These home owners will not be able to re-fi or sell their house if something goes wrong. That spells DANGER!! DK, glad you were able to short sell when you could – it’s going to get real ugly…