Minneapolis MN Homes

The buzz word in Real Estate this year is “Strategic Default”  Its becoming more clear that financially capable homeowners are walking away from their mortgages due to the massive losses in equity.   Rather than liquidate other investments or attempt to do a Short Sale many home owners with significant assets are opting for a more calculated financial decision.

Rather than fight until the bitter end and wait out the market for an unknown amount of time to recover equity, homeowners who choose to default on purpose simply stop making payments and walk away.

What does this mean for homeowners in Minnesota?

Possible declining values in your neighborhood is the simplest way to sum it up.  The foreclosed home will always sell for less than a traditional home and force a traditional home to adjust price to be more attractive to the value conscious buyer.   Some experts predict that this will cause prices to decline by as much as another 20%.   More realistically we are assuming the true bottom would be at most another 10% decline due to an improving job market and strong economy here in Minnesota.

For further information on the Minnesota Housing Market and Homes for sale in MN visit www.joeandcindy.com

Press Release-

ReMax Realtors were recognized as the highest rated by consumers for overall satisfaction by J.D. Power and Assoc.  Joe and Cindy Welu, Realtors with Remax in the Minneapolis, spoke out regarding the findings.  ”Its great to see the recognition for our organization.  ReMax is a great company with the most experienced agents in the market place, in markets such as these that experience stands out”

View the full Press Release from ReMax International:

Minnesota Realtors in agreement for 2011

As MN Realtors specializing in the Minneapolis Real Esate market, we have made our weekly networking calls and discussed the marketplace so far this year with some of the Top Realtors in Minnesota.   We are fortunate to have friends and colleagues who are Top  Agents with CBB, Edina and Remax that experience the market front and center on a daily basis from various perspectives.  Some of the points below are items the everyone seems to agree on:

Short Sales are here to stay

In MN, homes that are selling short of whats owed on the mortgage can make up as much as 1/2 the sales on any given month.   The agents in Minnesota we have spoken with feel this number will remain high and even grow over the next couple of years.  Even though the market seems to be better in most respects, the massive loss of equity will not be restored for years to come.  Thus forcing homeowners to negotiate with their lenders and do Short Sales.

Upper Bracket Prices will decline

The upper end in Mn and across the country has seen something call "strategic default" take the market by storm.  Sellers who feel its a better business decision are walking away from homes in record numbers.  As defaults in this price range grow, it means more downward pressure on pricing.

Housing demand is coming back

Although slowly, demand is coming back for homes.  Traffic is up across the board with buyers that are either sick of renting or simply want in before prices go up.   The demand is not in all price ranges equally, but it is present more now that in the previous 2 years.   Even though prices are far from rebounding, people realize that homes are something that's needed in this country.   People are not going to start colonizing in tent cities like a few crazy people predicted in the dark months of 2008.   The population is growing without question which means the need for more housing units in the coming years

Avoiding a Foreclosure in Minnesota

Analyze the situation

The first step to avoiding a foreclosure is to look at where you are in the process. Are you behind on payments? Are you underwater on your mortgage? For doing Short Sales in MN these are the initial items we need know.    If you can't afford to keep your current home generally there are some very good reasons why.  As Short Sale Experts in Minnesota we have evaluated hundreds of situations with homeowners who need to sell but have what they feel is a hopeless situation.  For the most part the reasons we see people wanting/needing to sell their home to avoid a forelcosure are valid hardships.  Therefore the situation is far from hopeless.

Determine the hardship

A hardship is a material change in a homeonwers situation (usually financial) that prvents them from being able to afford the mortgage payments.  This is the key ingredient to qualifying for a short sale which will allow a seller to avoid a foreclosure if they cannot keep the home.  Some of the more common hardships are  Reduction of income, Job Transfer, Job Loss, Divorce, variable interest rates, growing family, and many other unique situations.

Get a plan

Once you have established the fact you need to sell the home to prevent foreclosure, get a plan in place right away.  Do not wait to take action, call an expert who can help you with the process.  The banks and their short sale process's are complex and unless you have done it many times before you should not attempt to work with them alone.   Call someone who has a short sale certification like the CDPE (Certified Distressed Property Expert) or another designation focused on short sales and distressed properties. 

For Minnesota Homeowners who want to Avoid Foreclosure, visit www.MinnesotaShortSaleTeam.com or call 952 943 1324.

Realtors in MN educate sellers on foreclosure prevention

Minnesota Realtors are becoming more of a factor in preventing foreclosures in Minnesota than anytime in history.   With the surge of homeowners underwater on their mortgage, many sellers are unsure where to turn or how to handle their situation.  Over the past couple of years agents have continued to realize the tremendous need in this segment of the market, and many have reacted by increasing their level of eduction in the forelcosure prevention arena.

Short Sales are the preferred method

MN Short Sales have been increasing by the month, while foreclosures are seeing a decline.  The main reason for this is Realtors educating their clients.    Many sellers have now realized that a short sale not only can save them from foreclosure, but can also help the rebuilding of their credit record in the long run.  When explained properly the decision to do a short sale vs. walking away, and allowing foreclosure is an easy one.

Home values will stabilize

Instead of a bank selling a property for 60 cents on the dollar,  a short sale will often bring 90 cents on the dollar, thus preventing neighborhood nose dives in value.  Early on in the foreclosure crisis, it was not uncommon for one or two foreclosures to cause a rapid decline in values making all homeowners suffer losses in equity.

For more information on doing a short sale call 952 943 1324 or visit www.minnesotashortsaleteam.com