Short Sale Homes
Short sales had become a sad reality of real estate across the country. What are short sales? They are property that sells for less than what is owed to the bank.
Mostly, they are a result of greed gone wild. No one group is totally responsible, but everyone became a party to it. Realtors watching and encouraging the rapidly rising prices, banks allowing people to get into properties without real down payments, such as people using equity lines for down payments instead of having real cash. It basically became a pyramid of debt on top of debt.
When owners can no longer afford what they have borrowed and have stopped payments, it becomes a negotiation process of getting rid of bad debts as opposed to letting them sit there. Short sales have been a factor in bringing down property values in the surrounding neighborhoods. The more short sales, the more the prices drop. Short sales are a great way to purchase a property for a good price, as long as one knows what they are getting into. Banks drag their feet before accepting an offer in the hopes that someone else will come along with a higher price. You can't blame the banks, they are trying ot reduce their loss, however, for those buying the property, as long as they are willing to wait, the reward of getting a property for a great price is well worth it. Patience was the key to this process. Thankfully, those days are over and we are in a hot market again. And hopefully, everyone has learned from the past, will be more responsible in their debts, that banks are more responsible in their lending practices so we do not end up back in those conditions again.
Call me today at (843) 452-1200 for more information.