By: Michael Fitzpatrick
The question that I have been asked is "how is the pandemic going to effect the housing market?"
In my opinion, after speaking to experts in the field like bankers and real estate attorneys that only do foreclosures and short sales:
It depends on the area you are in. In general to the second home market, second home market is in reference to two types of people:
1. People who bought a house and are looking to purchase again.
It is really going to affect the people who just purchased homes because of the forbearance that mortgage companies gave right away. Which was a great idea, but the main plan should have been extending the loan by three months. For example, you bought a house, and your loan ends April 2027. With the forbearance you should have a new ending date of June 2027. I have a feeling that a lot of these mortgage companies are going to ask for the three months upfront once NJ and PA open businesses again. A lot of people will not have this money to be able to pay all of it back right away, causing an increase in foreclosures.
2. People who have a primary and secondary home. For example, a vacation home.
Many vacation homes have not been allowed to rent which has resulted in loss of income for the owners of the property. This means owners could fall behind on being able to pay their mortgage. Mortgage companies should extend the loan without any fees, excluding interest.
There are ways to avoid foreclosure or short sales. If you are worried, give me a call at 267-549-2505.
I will put you in the right direction and explain ALL of your options. The three most common options are:
- Getting a signature loan
- Negotiating with the mortgage company
- Selling the property
My area consists of Philadelphia, South Jersey, and the surrounding areas. As of May 25, 2020 we are in the yellow phase (pa) which means real estate transactions are a go with restrictions. New Jersey has allowed virtual real estate transactions to occur from the beginning. We are at full steam in our market.
- Currently a sellers market
- Average days on market is less than 10 days with full price offers
It will take at least 45 days to know the true health of the market, but based on my research, the market is very positive for this area.
About the author: Michael Fitzpatrick has been a realtor for over 20 years and is licensed in both PA and NJ. He created The Mike Fitzpatrick Team (TMFT) and coaches agents. In 2019 TMFT won the award for "Top Team in Volume" for the brokerage, Keller Williams Real Estate located in Philadelphia, Pa 19115.
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