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;The ‘Mortgage Reform Bill’ passed by the congress, and signed into an Act by President Bush, sends a ray of hope to homeowners of homes facing foreclosures in San Diego. Frannie Mae and Freddie Mac, who together handle close to half the country’s mortgages are to receive relief, however how this will help San Diego foreclosures is still unclear.
Statistics show that there is a 168.43% of change in sales of homes facing foreclosure and foreclosed homes in San Diego comparing June 2007 with June 2008 according to the San Diego County Foreclosure Statistics – 2008. This is being looked upon as a good opportunity for people wanting to buy their first home or people looking to invest in property.
With an unprecedented increase in foreclosures there are more options present to homebuyers now than before. These include homes facing foreclosures, bank owned properties and also homes that the government owns (HUD homes). For HUD homes in particular, the government has appointed and approved a list of real estate agents.
Homeowners facing a foreclosure do tend to go in for a short sale. A short sale being; more is owed on the property that what the property is actually worth. For example, a property could be valued at $525,000 and the homeowner owes the lender $550,000. In a case such as this, the lender agrees that the property be sold for less than what it is valued at simply because they do not wish to spend the time and money involved in the foreclosure process. It is not unprecedented that properties sell for 20 to 50 % lesser than their current market value.
With foreclosures for sale, it is the banks that have to be dealt with. Maintaining foreclosed properties increases a Bank’s overhead costs and they like to sell the property as soon as they can to reduce costs. Therefore, when dealing with a bank, the buyer does have a distinct advantage in the negotiating process. Also, with foreclosures for sale, more conventional methods can be followed and one wouldn’t have to worry about coming face to face with a homeowner having emotional ties with the home up for sale.
Lists of foreclosure properties can be found on-line, in local newspapers, with local real estate agents and banks. Make sure a decision is not reached in haste, do look before you leap.
