We are all facing the challenges of the economic downturn in one way or another. Many of our good friends and clients have lost their jobs and are struggling. Over the last year and for the much of the coming year, a big segment of our work is devoted to providing solid information and expertise to assist with sometimes difficult transitions. We just want to thank our clients for placing their confidence and trust in us.
Last weekend there was a great program on KUOW about “The Politics of Foreclosure” (to best listen to the program, click on the “download” link under the “Listen to Weekday” section). We encourage you to take some time and listen to this discussion. Steve Scher invited a panel of local experts who have very interesting insights into the current state of foreclosures in our area. The Seattle area is more solid and hopeful than most areas of the country, but it is predicted that our area will still experience a higher than normal level of foreclosures as adjustable rate mortgages and sub-prime mortgages continue to reset.
The good news:
- There is more strength in the market in the last few months and more buyers buying homes due to low interest rates and the Federal tax credits.
- 87% of the sub-prime mortgages (most risky) have already reset and the remaining adjustable rate mortgages that are due to reset have a “soft landing” with the current low interest rates
- We have a diverse economy in our region and jobs are a key factor in home sales and overall recovery.
We know that the homeowners who are most at risk are those who bought or refinanced (and maybe took out equity) since the height of the market in 2007. For these homeowners, they may be upside down on their mortgage if they need to sell because home values have decreased over that period. The options for loan modification are limited, but work is being done to address this issue. Our expertise is in selling homes, so we cannot assist you with loan modification questions, but we know of some resources to pass along and would love to learn from you, too!