All markets have a certain percentage of homes or homeowners who are distressed. Distressed could reference the condition of the property, the state of the homeowners finances, the reduced value of a property because of poor market conditions...there are many variations. In a healthy market one can expect about 1 to 3% of properties/homeowners to be "distressed." In some areas today, distressed properties may number as many as 1 in 10.
Here in the South Bay area we are quite fortunate. We are experiencing somewhere in the area of 1 in 75 homeowners facing either some loss of income, property in foreclosure (or currently behind in payments) or mortgages adjusting to sometimes double the original monthly payment. Our values have declined but generally only 25 to 35% (varies from city to city.) This is good news for us geographically. For a homeowner who just lost a job and is facing an increase in his/her mortgage payment because of an adjustable rate mortgage at a time when their value has decreased possibly under their loan balance, the news is not so great. Many times, these homeowners try to work with their lender (loss mitigation departments) to work out a payment plan or rewrite their loans for lower payment amounts (with the owed balance tacked on the back end.) Check Government Site: http://www.makinghomeaffordable.gov When the lender can't help and the homeowner must sell the home to avoid foreclosure, my expertise as a Certified Distressed Property Expert applies. In working with a "short sale" (loan balance is higher than market value) the first thing a homeowner must do is put their property on the market. Homeowners must choose a Realtor who has the specific training to work with the lender and help them through this process in the most efficient and painless way possible. Call me for a free confidential consultation to help determine whether you, a friend or a loved one may be a candidate for a "short sale."
In my next few blogs, I will be going through some additional information to help distressed property owners. In the meantime, I will be putting together a new website http://www.TeamSouthBayShortSales.com and will be posting information on the website to answer some of your questions, especially the biggest question regarding FORECLOSURE vs. SHORT SALE.
Call anytime for no obligation information: 310-534-3940