As your Annapolis area short sale expert realtor, I am looking forward to providing you with timely data on the state of the real estate market and particularly, short sale activity within the Annapolis area.
If you or anyone you know is having difficulties making their mortgage payments, please call me at 443-660-8032 for a free, no obligation consultation.
I believe that, although somewhat isolated from the downturn in the market given its demographic and economic composition, the Annapolis area will be seeing an increased number of distressed properties in the nearest future. This phenomenon will occur due to worsening economic conditions in the area as well as the resetting interest rates on adjustable rate mortgages (ARMs) that are anticipated later in 2011.
Many homeowners used ARMs during the height of the market in order to get into higher priced homes all over the Annapolis region. Once they reset at potentially higher interest rates, homeowners' required housing payment will increase. This change can be significant, especially for those who took out interest rate mortgages and will now need to start making principal payments with a shorter amortization period. For many families, even in this area, this event can be of great concern and may force them into default.
In 2010, 171 short sales were listed by local short sale agents in Annapolis. During the same time period, only 70 short sales actually closed. This means that over 100 short sale listings are still lingering on the market with many more in the pipeline.
Just to give you an idea, another 56 short sales were listed during Q1 of 2011 while only 32 short sales went to the settlement table.
Absorption rate of short sales is an important concept to digest. Given the more technical and specialized nature of the short sale process, it goes without saying that we can expect the success rates of short sale listings to be much lower than those of regular listings or bank-owned properties.
According to data from MRIS, Inc, in 2010 Anne Arundel County had only about 27% of short sales listings actually close. The success rate is even lower in Baltimore County and Baltimore City.
For a detailed explanation of difficulties encountered by short sale sellers, please read my column on the intricacies associated with short sales which appeared on patch.com.
As a short sale specialist, I am here to assist my clients in the most difficult of times. Find out why, when it comes to short sales, my team is a cut above the rest in terms of knowledge, experience, and client service. Call us today at 443-660-8032. You do have options!
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