Foreclosure News
- "We have only begun to see the foreclosures", says Debbie Goldstein of the Center for Responsible Lending.
- 9 out of 10 real estate agents don't know what a short sale is. (survey)
- An estimated 2 million American homeowners face increased monthly mortgage payments in '08 (boston.com)
- Experts predict that foreclosure rates will continue to increase throughout 2008 and into 2009 (yahoo news)
- RealEstateJournal.com predicts that home values will fall 7% on average nationwide during 2008.
The market has changed... We can help! Don't hesitate, call us today!
Current Real Estate Market Conditions
As most of you know the real estate market has substantially slowed down since the market's peak in 2005. As the market has slowed, homes are not appreciating like they had been in years prior. In a strong real estate market where home prices keep increasing every year adding thousands of dollars in equity to property values, people have an asset to fall back on if the are tight on cash. Through refinancing, selling or taking out loans against the value of your home, you are able to extract money from your property. If there is an emergency like a death, illness, injury or accident the equity in your house can add much needed cash through those tough times. In a strong real estate market property appreciation can really help tide people over through problematic times, tragedy and misfortune.
On the flip side, when the real estate market is bad and properties are not appreciating, we don’t have equity to tap into and use through tough times or in an emergency. We are experiencing market conditions like this now. As a result, in times of hardship people can’t make all of their payments and satisfy all of their financial debts. This causes an increase in foreclosures. People are just so strapped that something has to give, and in many cases the expensive monthly mortgage payments become their biggest financial burden.
Currently foreclosure rates across the U.S. have doubled and even tripled in the last two years. As many as 5% of all mortgages will be in default by the end of 2007. A foreclosure is bad for everyone involved: the bank doesn’t get paid it’s money and has to spend thousands of dollars trying to get the property back, the homeowner is faced with losing their home by having it sold right out from under them, going through a foreclosure destroys your credit score for at least 7 years making it nearly impossible to finance anything during that time period, and there is a lot of emotional stress involved for the homeowner.
Our Response To The Market
We here at Real Estate Creative Solutions Inc have been entrenched in the real estate market through the last 5 years. As the market has changed we have changed with it, so we can continue to succeed in the industry. As the market is spiraling down, we see the need, from homeowners and banks, for someone to step in to the foreclosure process and negotiate a sale that is win-win for all involved. Homeowners need debt relief and need to avoid having the foreclosure on their record. Banks need to recoup money from the non- performing asset so they can reinvest back into the economy. We believe that we can fill that need by offering a professional service to homeowners and banks that creates a win-win scenario for all involved. In response to the market we have created a partnership to perform Short Sales.
A short sale is a scenario when the bank excepts less than the mortgage amount owed on the property. Banks are not in the business of owning real estate, and in most cases it makes sense for them to sell for less than what they are owed so they don’t have to deal with the property and the liability that comes with owning property. Through the short sale process the homeowner is able to avoid having the foreclosure on their record and they are given debt relief from the burdensome payments of a monthly mortgage. Both parties are able to walk away from the home and start over. A foreclosure is a very emotionally exhausting circumstance; to be given a fresh start and the ability to walk away without your credit destroyed and burdensome debt hanging over your head has truly been a blessing for our clients.
At Real Estate Creative Solutions Inc. we have performed short sales for homeowners and investors during the last few years. As the market continued to decline, we saw an increase in demand for this service. As this industry grew we knew it would be important for our success to build a team of experienced short sale experts around us. At the beginning of 2007 we began forming partnerships with experienced short sale companies to this end. During this time we have handled hundreds of deals, helping homeowners Nationwide avoid foreclosure and eliminating their debt. Each of these companies bring additional experience handling and negotiating all types of short sale deals; due to this pool of knowledge our success in the industry has been paramount.
Real Estate Creative Solutions Inc. brings the knowledge of construction, renovation, marketing, buying, and selling homes to the table. But more importantly we have worked with homeowners in difficult situations doing creative real estate deals in a win-win manner since our inception. Through these partnerships we are able to capitalize on the strengths of each company to create a powerful short sale business. A business that works hard for you, a business that is well educated, a business that treats you fairly, and above all, a business that will give it to you straight. We aren’t afraid of asking or answering the tough questions that arise during these difficult situations.
Our morals and our ethics are very important to us. We take pride in genuinely helping homeowners and banks alike, avoid the foreclosure process and put these circumstances in the past by giving everyone the ability to start fresh. We appreciate your interest and thank you for allowing us the opportunity to help you through this tough time.