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

Real Estate in Victorville is a great investment foris well below market value. Banks are willing to take a
those of you who have secure employment, moneysizeable hit to avoid foreclosure proceedings.
socked away, and excellent credit. However, for the- Instant equity
rest of us struggling to make mortgage paymentsDisadvantages for the buyer:
and seeing our property values decline, these are the- The waiting time and not sure when you will close.
most difficult of times. With the economy still in- The Sales price has to be approved by the seller's
turmoil, there are more foreclosures and short salesand often the price does not reflect what was
in Victorville than ever before. Trends are likely tooriginally advertised.
continue until unemployment returns to "normal"- In most cases, multiple offers from different
levels in the Victor Valley.buyers are submitted for approval, meaning you are
Real Estate in Victorville continues to grow at a rapidin a bidding war.
pace. The residential population of Victorville isA Foreclosure: A proceeding in which the financer of
approaching 95,000 and estimates suggest that thisa mortgage seeks to regain property because the
figure more than doubles during business hours.borrower has defaulted on payments.
Victorville is home to a large and diverse pool ofAdvantages for the seller:
workers, and has many educational opportunities to- No mortgage payments to make.
ensure a qualified supply of workers that will fuel the- Foreclosure proceedings take months to conclude.
future of Victorville real estate. Latest market- The home is still yours until the foreclosure is final.
statistics show that the level of housing inventory in- Banks sometimes give cash for keys after the sale.
has risen every month since the beginning of theCash for keys is a program that is designed to induce
year. A growing portion of this inventory comes fromthe owner to maintain the home to attract a buyer.
short sales or properties that have been foreclosedDisadvantages for the seller:
by the banks. These statistics suggest a very strong- The right of home ownership is stripped away.
buyers market for Victorville Real Estate and a great- Homeowners return to the rental market
opportunity to negotiate a good deal. Whether you- Your credit takes a substantially large hit, and a
are listing or buying, having more information at yourforeclosure will remain on your credit report for 10
fingertips, as well as knowing the comparable realyears.
estate values in Victorville is critical from a financial- Under Fannie Mae guidelines, you will not be eligible
standpoint. I am going to define what Short Salesto buy another home for 7 years.
and Foreclosures are and what the advantages,Advantages for the buyer:
disadvantages, potential pitfalls, and windfalls these- Some lenders offer incentives to home buyers
home statuses pose you; the buyer and/or seller.purchasing their foreclosures. Fannie Mae and Freddie
A Short Sale: This is a home that is in pre-foreclosureMac also offer incentives to owner-occupant
status. Meaning, that the owner of the propertypurchasers, such as reduced down payments and
owes more on the loan than the property is worth.extended home warranties.
Advantages for the seller:- In the case of a HUD Home, HUD may allow certain
- No mortgage payments to make, unless yourepairs to be escrowed rolled into the loan.
choose to make them.- Homes could be sold below market value.
- You will be eligible, under Fannie Mae guidelines, toDisadvantages for the buyer:
buy another home in 2 years instead of 5 to 7 years.- Depending on the lender, the transaction may take
- If your credit report does not reflect a sixty daylong to close.
late pay you may be eligible to buy another home- Lenders are not required to complete a seller's
immediately.disclosure on foreclosures, so the buyer must rely on
Disadvantages for the seller:their home inspection and their agent for advice.
- Waiting for the bank to respond to an offer is time- Buyers who close late may have penalties or may
consuming.lose their deposit and forfeit the contract if they do
- The bank will want to examine personal recordsnot close on time.
such as tax returns, bank accounts, assets and- The lender will often refuse to make any repairs to
liabilities, and a hardship letter from you.the property.
- Maintaining your home in spotless condition for- In cases where a home is in a severe state of
months until an offer is received.disrepair, it may be difficult or impossible to obtain
- There is no assurance the bank will accept a shorttraditional FHA financing.
sale offer.If you have any further assistance regarding the
- The offensive credit will remain on your creditVictorville Foreclosure and Victorville Short Sale
report for seven years.market, call Mountain High Realty, your leading source
Advantages for the buyer:for Victorville Real Estate.
- Low pricing - Short sales typically have pricing that