Smooth sailing...or is there another swell looming ahead??

The housing market is facing more and more homeowners who are 90+ days delinquent but have yet to lose their homes, this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize.
Approximately 7 million properties could be heading for foreclosure. Some economists think it could take almost three years before all these homes have been put on the market and purchased by new owners. The number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then if they can't get a loan modification, go through the foreclosure process, which can take up to a year to complete. When these foreclosed properties add to the supply of homes for sale, they could add to a decline in housing prices, which have increased slightly through April. That rise was partly because of the tightened flow of foreclosed homes into the market and the $8000 First Time Buyer Tax Credit. Perfect example of supply and demand, a lot of buyers and not enough inventory.
The rate of seized properties, for example, peaked in the middle of 2008 and fell steadily last year, but the banks expect foreclosures to increase this year, nearly doubling to 45,000 by the fourth quarter.
So the positive housing data may not be signaling a true bottom, as many servicers are holding back on foreclosures and the distressed houses are not yet being offered for sale. It could take almost 3 years to clear the backlog.
While banks foreclosed on fewer homes in February than a month earlier, borrowers continued to fall behind on their payments, adding to the inventory of properties headed toward foreclosure that have yet to be put on the market.
The shadow inventory reflects the increasing lag between defaults and foreclosures. Many lenders are struggling to keep up with the overwhelming number of borrowers who aren't making their payments, they're hesitant to rush in and foreclose, which would mean adding more homes onto the market, bringing prices into decline once again.
If you or anyone you know, would like to avoid foreclosure and know your options, please feel free to contact me.

Thinking Of Selling Your Home?

If you are thinking of selling your home, now might be the right time. Traditional sellers... have a great opportunity to receive a "Move-Up" Tax Credit of $6500.

*Short Sales...You are not alone. Many home owners are facing the same stressful times as you might be facing, I can help you through this. Programs such as HAMP (Home Affordable Modification Plan)and HAFA (Home Affordable Foreclosure Alternatives Program) are making it easier to deal with the default and foreclosure rate. If you'd like to try and stay in your home or decide to short sale, I'll be with you every step of the way. In some cases you will be able to purchase another home in as little as 2 years.

*Short Sales...There are no fee's or commissions paid by you (the seller) if you list your home with CENTURY 21 Award



Please give me a call and let's start getting you the help you need and deserve.

Most sincerely,

Terry L Bursky
Realtor
(619) 417-5645