An Informative Look at Short Sales & Foreclosures, Explore Opportunities for Victorville Real Estate

Real Estate in Victorville is a great investment for those of you who have secure employment, money socked away, and excellent credit. However, for the rest of us struggling to make mortgage payments and seeing our property values decline, these are the most difficult of times. With the economy still in turmoil, there are more foreclosures and short sales in Victorville than ever before. Trends are likely to continue until unemployment returns to „normal“ levels in the Victor Valley.

Real Estate in Victorville continues to grow at a rapid pace. The residential population of Victorville is approaching 95,000 and estimates suggest that this figure more than doubles during business hours. Victorville is home to a large and diverse pool of workers, and has many educational opportunities to ensure a qualified supply of workers that will fuel the future of Victorville real estate. Latest market statistics show that the level of housing inventory in has risen every month since the beginning of the year. A growing portion of this inventory comes from short sales or properties that have been foreclosed by the banks. These statistics suggest a very strong buyers market for Victorville Real Estate and a great opportunity to negotiate a good deal. Whether you are listing or buying, having more information at your fingertips, as well as knowing the comparable real estate values in Victorville is critical from a financial standpoint. I am going to define what Short Sales and Foreclosures are and what the advantages, disadvantages, potential pitfalls, and windfalls these home statuses pose you; the buyer and/or seller.

A Short Sale: This is a home that is in pre-foreclosure status. Meaning, that the owner of the property owes more on the loan than the property is worth.

Advantages for the seller:

  • No mortgage payments to make, unless you choose to make them.
  • You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 to 7 years.
  • If your credit report does not reflect a sixty day late pay you may be eligible to buy another home immediately.

Disadvantages for the seller:

  • Waiting for the bank to respond to an offer is time consuming.
  • The bank will want to examine personal records such as tax returns, bank accounts, assets and liabilities, and a hardship letter from you.
  • Maintaining your home in spotless condition for months until an offer is received.
  • There is no assurance the bank will accept a short sale offer.
  • The offensive credit will remain on your credit report for seven years.

Advantages for the buyer:

  • Low pricing – Short sales typically have pricing that is well below market value. Banks are willing to take a sizeable hit to avoid foreclosure proceedings.
  • Instant equity

Disadvantages for the buyer:

  • The waiting time and not sure when you will close.
  • The Sales price has to be approved by the seller’s and often the price does not reflect what was originally advertised.
  • In most cases, multiple offers from different buyers are submitted for approval, meaning you are in a bidding war.

A Foreclosure: A proceeding in which the financer of a mortgage seeks to regain property because the borrower has defaulted on payments.

Advantages for the seller:

  • No mortgage payments to make.
  • Foreclosure proceedings take months to conclude.
  • The home is still yours until the foreclosure is final.
  • Banks sometimes give cash for keys after the sale. Cash for keys is a program that is designed to induce the owner to maintain the home to attract a buyer.

Disadvantages for the seller:

  • The right of home ownership is stripped away.
  • Homeowners return to the rental market
  • Your credit takes a substantially large hit, and a foreclosure will remain on your credit report for 10 years.
  • Under Fannie Mae guidelines, you will not be eligible to buy another home for 7 years.

Advantages for the buyer:

  • Some lenders offer incentives to home buyers purchasing their foreclosures. Fannie Mae and Freddie Mac also offer incentives to owner-occupant purchasers, such as reduced down payments and extended home warranties.
  • In the case of a HUD Home, HUD may allow certain repairs to be escrowed rolled into the loan.
  • Homes could be sold below market value.

Disadvantages for the buyer:

  • Depending on the lender, the transaction may take long to close.
  • Lenders are not required to complete a seller’s disclosure on foreclosures, so the buyer must rely on their home inspection and their agent for advice.
  • Buyers who close late may have penalties or may lose their deposit and forfeit the contract if they do not close on time.
  • The lender will often refuse to make any repairs to the property.
  • In cases where a home is in a severe state of disrepair, it may be difficult or impossible to obtain traditional FHA financing.

If you have any further assistance regarding the Victorville Foreclosure and Victorville Short Sale market, call Mountain High Realty, your leading source for Victorville Real Estate.

Immobilienmakler Heidelberg

Makler Heidelberg

Source by Michael R Fullerton

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.