Many services offered by the real estate market like walkthroughs, rentals, etc. had a hard hit by the virus. As these aren’t the only services that have been suffered, other facilities like foreclosures and short sales have also been adversely affected. In this blog we will tell you How COVID-19 has affected the Foreclosure and Short Sales Market.

The Imprint of Coronavirus on the Foreclosure Market

As everyone is witnessing the catastrophic situation of coronavirus, its effects are also visible in respect with the economy. The loss industries have been facing is immense and would take a while to make up forthe loss. Although, the foreclosure market is going through an uptick, according to the research by FTSE (Financial Times Stock Exchange) and REITs (Real Estate Investment Trusts) say there’s an evident index downfall approximately by 7.7 percent (noted on March 9, 2020).

If this prolongs, it would be difficult for homeowners to keep up with the monthly mortgage payments which will later result in increased foreclosure cases, although it is tough to predict the real estate market. As facts are stated, in some states the mortgage payments have been kept on hold for some time until the pandemic contains.

Coronavirus has Pushed Mortgage Rates Lower

The coronavirus outbreak has made the Federal Reserve to take two emergency rate cuts which apparently brought the bond yields to almost zero. The usual 30-year-fixed-rate-mortgage has been dropped to 3.29% (noted on 5 March). As stated in the records, previously the 30-year-fixed-rate-mortgage was lowest in the year 2012 amid the recession when it hit 3.31%. Additionally, the 15-year-fixed-rate-mortgage also fell by 16 basis point to 2.79% according to Freddie Mac.

The main cause of the mortgage rates to slump is because of the treasury market which has sunken with a lot of margin in the past months. Furthermore, the uncertainty of mortgage rates shall remain in the ditch for a long period.

Corona on Short Sales

When businesses are closed around the globe and many of them can’t go on their jobs, homeowners are forced to sell their houses for a living. Homeowners with no jobs are forced to sell their house for bare minimum profits to perform their regular routine and satiate their daily needs. As a short sale can cost less than the foreclosure to the lender, it always proves to be the most viable way for the lenders to minimize the loss and improve profits. Additionally, a short sale might not damage the credit score of a homeowner.

If you have a hefty amount of mortgage to repay then your only possible option to fulfil the amount is by selling your house to cash buying company.  As there is a rapid increase in short sales it is evident that problems like unresponsive lenders, misplaced documents, erroneous or unrealistic home value assessments, and prolonging processes may make the whole process difficult. In such chaotic situation Elite Properties is one such company which will help you sell your home fast for cash on afair market value. We alsobuy your house as-is, we won’t ask for any lengthy documentation process, which automatically cuts the hassles of a troublesome sale.

You can call us at 7189775462 or visit us at Elite Properties NY to learn more about the home selling process with us. Where everyone around the world is going through the pandemic crisis we’ll help you be at ease with the home selling or short sale process.

You probably must have heard the term “short sales” a lot in these past years. Short sales are something we hear more often when it comes down to real estate area. Short Sale meaning isn’t something every commoner will understand. So, let us be more clear on the topic here. A short sale is when someone sells his house, with the awareness and approval of the mortgage lender for less than what he/she owes to the lender. If the lender accepts the terms, then you can proceed with selling the property.

For example, consider you’ve defaulted on the payments and your mortgage lender has filed a foreclosure in the bank against the property. Panicking won’t do anything when you are facing a foreclosure. You can talk with the lender and put your property on short sales hoping for other buyers to buy the property. So, you owe your lender a $500,000 but, the new interested buyer is only willing to pay a $400,000 for the property. You might not be in a situation to pay off the difference amount too. So, convincing your lender to agree for a less amount than you owe is short sales. Most of the lender and banks agree to the terms as this is time-consuming and with a lot of hassle. The final result a win-win situation as the seller is no longer saddled with the debt and the buyer gets the property at a bargain price.

So, if you are selling or buying a property and is considering a short sale, here are the top things you need to know before proceeding with short sales before fixing the deal…

Know the Difference Between Short Sales and Foreclosure

This is something most of you might get confused upon. Short sales and foreclosure are entirely different scenarios. In a foreclosure, the role of the homeowner is slightly less than in short sales. People who try to avoid a foreclosure by working out a deal with the lender or bank usually go for short sales. And there isn’t any tension about evicting the previous owners in short sales as in foreclosure. Well, things do get messy in foreclosure!

Unlike a foreclosure, short sales don’t impact your credit much. Still, it’ll damage your credit score but not for as long as the damage done by a foreclosure. You’ll even have the chance to apply for a home loan for two years while in short sales.

Takes A Lot of Time

A short sale doesn’t refer to the time involved as the whole term is somewhat misleading. A short sale can take up to five to nine months to close; sometimes even longer. If it’s the bank you are dealing with, don’t expect the bank to come to you and tell how much it would accept for the property. So, what you must make sure is that while negotiating with the interested buyer, you should get the price that has been approved by the lender or the bank for the property. Finding a suitable buyer to buy short sale property or buy short sale house can be troublesome without the help of an experienced short sale negotiator. So, the whole short sale process is time-consuming and a bit nettling.

Make Sure You Are Eligible For Short Sales

Saving your property by avoiding foreclosure with short sales seems pretty alluring but, have you cross-checked your eligibility for proceeding the short sale services? You must meet all the criteria and might require a written proof stating your eligibility from the bank or the mortgage lender. This itself will be time-consuming but have patience! For being eligible for short sales, you must owe more money to the bank or the lender than the house’s total worth. If you are eligible for any loan modification, then you can rule out all the possibilities of a short sale approval. A written proof that states you can no longer afford the monthly payment and any proof of financial hardships, like laid off or divorced or having excessive medical bills will make you eligible for proceeding with a short sale.

Make sure you pass all these eligibility criteria before even trying for short sales as this is full of hassle and time-consuming.

It’s Time You Consider a Helping Hand

Buying or selling short sale property will be a lot more troublesome if you are planning to go ahead alone. You’ll be facing a lot of pressure mentally and emotionally through the whole process. The first thing you need to do is find a trustworthy agent to sort out your problem. A real estate agent who’s experienced in every aspect of real estate can make a huge difference especially if you are selling short sale property. The short sale process involves a lot of legal procedures and paper works, which will leave you frustrated in no time. A Short Sale specialist who’s familiar with all these stages will help you push further without any difficulties. Well, the time flies, and you need to act more quickly in finding a buyer, or you can still face foreclosure.

Conclusion

Keeping your patience and confidence is the main key to every successful short sale. With the right agent who knows his way around will be a boosting factor when going for short sales. Also, beware of the cunning smiling faced agents who disguise and misleads you by offering a helping hand when you are vulnerable.