We Buy Houses in Any Condition - Culpeper VA: Lenders are being inundated with new laws designed to avoid foreclosing on homeowners. The gist of the new laws is to avoid the situation in the first place. Loaning money for a mortgage to a family that can’t really afford it is only asking for trouble down the road.
Millions of foreclosures are based on either the inappropriate amounts that were loaned in excess of what could really be afforded, the loss of a job, or an ARM loan that reset and has now become unmanageable with the new rates and new mortgage payments required. There is really a combination of negative events that have befallen Americans these days. The real estate bubble burst, causing those with reasonable mortgages to feel the pinch by reducing the value of their homes significantly.
That means that even if a family is keeping up with their mortgage they can’t sell and move until the market turns around, as they have lost any equity they had due to the market value crash.A house that was purchased for $100k ten years ago and has been paid down to $75k by now should mean that the owners would have about $25k in equity if the house was still worth the $100k it was when it was bought a decade ago. But they may now even be upside down in their mortgage, meaning the house could be worth even less than what they owe at this point. This all happened while they were paying their mortgage, keeping up with the taxes and insurance, and gaining what they was equity in their home to help provide for them in the future.
Now they couldn’t move if they wanted to as they are not able to get anything at all out of their home and might even owe money at closing!The new laws that apply to lenders are hoping to address some of the negative aspects of lending to those who are not ready for homeownership. They are designed to avoid the numerous foreclosures that are occurring daily across the country. When the foreclosure numbers start to slow, you may see a rise in home values, which will help to get some of the equity back for those like the family in the previous example.The rules are numerous and lenders are trying to keep up. Be aware that there are changes in the lending laws and your lender will have information for you if you are interested.
Artic Properties.com are experienced real estate specialist in Stafford Virginia. We buy houses that others won’t touch in the following areas of Virginia:
- Locust Grove
- King George
- All of Virginia
We are not real estate agents who list your house looking for buyers. We are Spotsylvania local home buyers, and there are no fees or commissions to you when we buy your house.
Contact Artic Properties today to get a fair and honest offer for your house!