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Stop The Gloom and Doom!

By Nancy Stemmle

Real Estate Agent with Remax Affinity Group

September 14, 2010 05:26 AM

While I am quick to admit, housing prices have fallen in the last year or so and there are a lot of folks who, usually no fault of their own, are losing their homes to foreclosure, I'd like it if our local media could occasionally focus on some of the more positive things going on.

While last Sunday's Toledo Blade article showing many homes that have values below their mortgages, NOT ALL of these folks have to move. Some may even be able to wait til home prices stabilize before they need to do anything.

It has been my experience, at least lately, that banks have taken a new approach to those homeowners who are forced to sell and have "underwater" mortgages. Short Sales have become a way of life and, frankly, a good thing for both parties.

A short sale can help the seller get out from under his mortgage and bruise his credit less than an outright foreclosure would.

A short sale can help a buyer purchase a home at a great price!

A short sale can help a bank not have to foreclose and add yet another home to their inventory!

So for those of you who thought a short sale was a "dirty word", you might want to modify those feelings and at least partially consider this for your home.

I would also like to point out that that same Toledo Blade ran a picture titled SUBDIVISION UNDER WAY IN SYLVANIA TOWNSHIP with a caption about new homes being BUILT AND SOLD in this market.

I wonder if they considered putting this on the front of the section instead of the "gloom and doom" article!

For "underwater sellers' The Lohman Team has 2 full time Realtors who specialize in these types of sales and can help you decide what is the best approace you can take.

For "smart buyers" we have 4 full time agents ready to show you the best values out there and help you navigate thru the red tape of buying a short sale or foreclosed home.

Call me 419-392-3772 for information on homes for sale in the Toledo metropolitan area.

Click here to visit my site and check out mortgage rates and special features.

Nancy Stemmle The Lohman Team Remax Preferred Associates

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Donald Tepper

Long and Foster - Fairfax, VA

DC area investor helping heirs of inherited homes

Valid points.

One especially important point--which you do mention but then pass by (which is fine; we make money by selling houses)--is "NOT ALL of these folks have to move. Some may even be able to wait til home prices stabilize before they need to do anything."

Absolutely correct.

If someone can afford their current payments and they don't have to move, then they should think very carefully before considering a short sale (or deed in lieu of foreclosure, or simply "walking away").

A lot of people--most actually--who buy things on credit are "upside down" on all sorts of purchases. They buy a car for $30,000 and put a few thousand dollars down. They drive off the lot. Now they owe $28,000 on a car that's worth $25,000. Do they feel pressured to get rid of it? No. They can afford the payments. The car is doing what it was bought to do. And one day it'll be paid off or sold.

Someone buys a big-screen TV for $1,900 and puts it on a credit card. They owe $1,900. But if they tried to sell the used TV tomorrow, how much would they get for it? $1,000, maybe? So what. They can afford the payments, and the TV's doing what it was bought to do.

Same--just on a larger scale--with a house. It's still doing what it was bought to do--providing shelter. And one day, too, it'll be paid off. Or, more likely--and you won't see this happening with cars or TVs--it'll actually regain its value. Maybe in 3 years. Maybe in 5 years. Maybe in 10 years. Meanwhile, the mortgage is being paid down, so even if values remain absolutely flat, after 10 years the owner won't be upside down.

That's a message I'd like to see out there more often.

Good post.

Sep 14, 2010 05:38 AM

Stop The Gloom and Doom!

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