There is so much conflicting information about the housing market these days. We've been hearing for months now that foreclosures are starting to level off, and the housing market is stabilizing. Then information such as in this article from DSNews comes out: http://www.dsnews.com/articles/lps-report-shows-an-about-face-in-delinquency-and-foreclosure-movement-2011-05-17.
The article states that delinquncies are up. It also tells us that homes in foreclosure are down. This information completely turns upside down all the data that was gathered during the first quarter of this year.
Agents like me that are on the front lines of the distressed housing market believe that the banks are having a hard time reporting the actual number of non performing loans due to the fact that they do not want to spook their shareholders. But isn't the first step in solving a problem is to admit that you have the problem?
Anecdotally, the conversations I'm having with clients and other agents specializing in distressed properties all believe that we have a second wave of properties that are about to hit the market this year. Very quietly, the banks and servicers are beefing up their foreclosure and short sale departments in anticipation of this increase in activity they see coming. In the artcle linked above, the data has been culled from an audit of 40 million loans. The numbers are compelling.
If you are behind in your mortgage payment, contact the banks immediately. The earlier in the process that you get the lender involved, there's a greater chance of minimizing the long term damage to your financial future. Get a local expert involved early in the process as well. With the new MERS requirements. there is absolutely no up front cost for the services of a local expert. Also, make sure you are dealing with an expert. That means they have experience in closing these distressed sales, and can provide you references. The distressed market is constantly changing, and it is imperative that the person you pick to help you is sharp and current with this market right now.
If you live in the Washington, D.C. metropolitan area (Virgina, Maryland, And Washington, D.C.), and you are behind in your mortgage, you can visit my websites (www.thegoodhousepeople.com and www.livealexandriava.com) and develop a plan of action. Having an expert and a plan will calm you down and provide the realistic and necessary hope to help you get through this very difficult time. It's going to get worse before it gets better, despite what the banks are telling us - and not telling us.
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