Website design By BotEap.comVictorville real estate is a great investment for those of you who have a secure job, money saved, and excellent credit. However, for the rest of us struggling to make our mortgage payments and watching our property values ​​decline, these are the toughest times. With the economy still in turmoil, there are more foreclosures and short sales in Victorville than ever before. The trends are likely to continue until unemployment returns to “normal” levels in Victor Valley.

Website design By BotEap.comVictorville real estate continues to grow at a rapid rate. Victorville’s residential population is approaching 95,000 and estimates suggest this number more than doubles during business hours. Victorville is home to a large and diverse group of workers, and has many educational opportunities to ensure a qualified supply of workers that will drive the future of Victorville real estate. The latest market statistics show that the level of housing inventory has increased every month since the beginning of the year. A growing portion of this inventory comes from short sales or properties that have been repossessed by banks. These statistics suggest a very strong buyer’s market for Victorville Real Estate and a great opportunity to negotiate a good deal. Whether you’re listing or buying, having more information at your fingertips as well as knowing comparable real estate values ​​in Victorville is critical from a financial standpoint. I am going to define what Short Sales and Foreclosures are and what are the advantages, disadvantages, potential dangers and windfalls that these housing estates present to you; the buyer and/or the seller.

Website design By BotEap.comA short sale: This is a house that is in pre-foreclosure condition. Which means that the property owner owes more on the loan than the property is worth.

Website design By BotEap.comAdvantages for the seller:

• There are no mortgage payments to make unless you choose to make them.
• You will be eligible, based on Fannie Mae guidelines, to buy another home in 2 years instead of 5-7 years.
• If your credit report does not reflect a sixty day late payment, you may be eligible to purchase another home immediately.

Website design By BotEap.comDisadvantages for the seller:

• Waiting for the bank to respond to an offer takes a long time.
• The bank will want to examine personal records such as tax returns, bank accounts, assets and liabilities, and a hardship letter from you.
• Keep your house in perfect condition for months until an offer is received.
• There is no assurance that the bank will accept a short sale offer.
• The offending credit will remain on your credit report for seven years.

Website design By BotEap.comAdvantages for the buyer:

• Low Prices – Short sales generally have prices that are well below market value. Banks are willing to take a considerable hit to avoid foreclosure proceedings.
• instant equity

Website design By BotEap.comDisadvantages for the buyer:

• Wait time and not sure when it will close.
• The sale price must be approved by the seller and often the price does not reflect what was originally advertised.
• In most cases, multiple offers from different buyers are submitted for approval, which means you are in a bidding war.

Website design By BotEap.comIn foreclosure: A proceeding in which a mortgage financier seeks to repossess the property because the borrower has defaulted.

Website design By BotEap.comAdvantages for the seller:

• No mortgage payments to make.
• Foreclosure proceedings take months to conclude.
• The house remains yours until the foreclosure is final.
• Banks sometimes give cash for keys after the sale. Cash for Keys is a program that is designed to induce the owner to keep the house in order to attract a buyer.

Website design By BotEap.comDisadvantages for the seller:

• The right to own the home is stripped.
• Homeowners return to the rental market
• Your credit takes a substantially big hit and a foreclosure will stay on your credit report for 10 years.
• Under Fannie Mae guidelines, you will not be eligible to purchase another home for 7 years.

Website design By BotEap.comAdvantages for the buyer:

• Some lenders offer incentives to homebuyers who buy out their foreclosures. Fannie Mae and Freddie Mac also offer incentives to owner-occupied buyers, such as reduced down payments and extended home warranties.
• In the case of a HUD home, HUD may allow certain repairs to be placed on escrow on the loan.
• Homes could sell for below market value.

Website design By BotEap.comDisadvantages for the buyer:

• Depending on the lender, the transaction can take a long time to close.
• Lenders are not required to complete a seller’s disclosure about foreclosures, so the buyer should rely on their home inspection and agent for advice.
• Buyers who close late can be fined or lose their deposit and contract if they don’t close on time.
• The lender will often refuse to make repairs to the property.
• In cases where a home is in a serious state of disrepair, it may be difficult or impossible to obtain traditional FHA financing.

Website design By BotEap.comFor further assistance regarding the Victorville short sale and foreclosure market, please call Mountain High Realty, your premier source for Victorville real estate.