More and more people are not paying their mortgages. we are hearing more and more stories of a rising number of homeowners deciding to pay down or off credit cards before making a payment to their mortgage. Believing that the banks already inundated with foreclosures and short sales will not take action quickly many homeowners are choosing to hold off on a payment to get their other debts reduced.
Hoping that baks will be willing to modify loans, and many banks won't modify or talk about modification till a homeowner is behind on payments, credit card debt is being reduced across the country. Whilst being late on payments will affect credit scores, reducing their high interest credit cards may be a savvy way forward. This tactic if credit card debt is paid off frees up more funds for mortgages from their paychecks. So when they do speak to the bank they are in a better position financially.
However, on top of this are many older executives who are out of work are finding it hard to new positions and are using up savings to avoid foreclosure. Having accessed these funds these homes are coming on the market as short sales and even those areas that have not been hard hit by foreclosures and short sales are seeing rises in the number of homes on the market tagged as bank owned, short sale or foreclosure sales.
This provides opportunities for those qualified buyers who are willing to be patient and work their way through the improving system of short sales, foreclosure and bank owned properties. Banks at last seem to be getting systems in place to get properties sold rather than have them sitting on their books.
At some stage also banks should be able to know what the cost of these mortgages truly are and be able to refinance them in the market using their past sales as proof of price for these investments allowing them to then make further profitable loans.
Just last night a quick search of two counties, Chester and Delaware counties, here on the outskirts of Philadelphia came up with over 200 homes tagged as being short sales, bank owned or foreclosures. These homes are good for those who are pre-approved for mortgages or those investors looking for rental properties that will when the market truly stabilizes and begins to improve will give an excellent return on investment.
If you are buying or selling on or around Tredyffrin Easttown or along the Main Line we can help you, contact us or connect
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