The reality is that the current market is a strain to everyone and every entity touched by it. Not only are defaulted home owners suffering the consequences of losing their home but so too are their neighbors and the municipalities where the house is located. It’s easy to forget that local governments aren’t prepared to handle the sheer volume of houses that become vacant and nuisances. While neighbors may grumble about short sales affecting the value of their homes, the fact is that a short sale should be a preferred solution to a foreclosure.
An Urban Institute study in early 2009 concluded that local government is hit with a whopping $19,227 collective bill for tending to vacant, abandoned and unsecured foreclosed houses. Such costs consist of notices, loss of tax revenue, demolition and police calls. Even on the lower side of estimates for houses that will not be demolished, municipalities are burdened by over $5,000 on average.
While the results of this study won’t necessarily sway a seller to opt for a short sale, it should serve as a reminder that investors providing a “financial rehab” on houses, in order to make them marketable, offer a valuable service that directly assists neighborhoods and municipalities. The full affect of this housing market has yet to be felt or determined but investors have an unprecedented opportunity to personally succeed as well as provide a civic duty to their community.
For more information on succeeding in short sale investing, feel free to watch the enlightening videos that we’ve put together or you may also visit, www.MikeBridges.info/agentvideos.
To your success,
Mike Bridges
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