Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.
Winchester Distressed Properties Are No Longer Distressing Home-owners
Winchester Distressed Properties Are No Longer DistressingThe good news for the Winchester-Frederick County, VA real estate market just keeps rolling in. It's safe to say that Winchester distressed properties are no longer distressing most home-owners. What is a distressed property? A distressed property can be a short sale or a foreclosure (or REO, real estate owned).
A short sale is a property the lender gives the home-owner permission to sell below the current loan balance. Many homeowners who bought in the pre-recession years, bought their homes at a premium price. For instance, a home that sold for $400,000 in 2006 lost value during the recession, and owners who carried those mortgages found themselves in trouble in 2008 and beyond.
Winchester distressed properties: What are they?The Winchester real estate market lost an average of 33% in the fall of 2008, and soon after, Winchester distressed properties shot up. That $400,000 home was now worth $280,000 - $300,000. That left the home-owner with a debt of up to $100,000 beyond his home's value which was no longer backed by his real estate. That scenario is where the often used real estate term, "under-water" originated. In that case, the owner was drowning in his mortgage debt because ... more
Are you on The Rain? Grow Your Network!