Short Sales In Albuquerque and Rio Rancho Take a Turn for the Better

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Even though they have been around for a long time, short sales did not really become a household term until relatively recently. In 2007, when all things in the housing market came crashing down, many of us saw the worst our real estate market had ever been. That was when countless homeowners found themselves in the impossible situation of owing more on their home than the property was worth.

You and I both know that no matter what a market might predict is the value of a home – sometimes life does not give us choices where we need them most. So for people that were equally as hard hit by the corresponding economic strife faced by the country at that time, there were almost no options.

Short sales were back then and remain till today, one of the best options for homeowners that have underwater mortgages. Alternatives to foreclosures, short sales allow homeowners to walk away from their mortgages, having paid the bank at least the fair market value on the property. Since it is a matter of the bank needing to accept a lesser amount than what is owed, the process is usually very lengthy and involves several steps and lots of people.

Though a short sale is never a good experience, it is definitely better than having to endure foreclosure. There are some credit ramifications of dealing with an underwater mortgage in this manner but they are not nearly as damaging as a foreclosure because it demonstrates the homeowners’ attempt to make good on the debt. Usually, most homeowners can purchase another home about two years from the time they did a short sale on their property whereas a foreclosure has lasting negative impact on a borrower.

Short Sale Activity Changing in the Albuquerque and Rio Rancho Markets

Locally, we have seen some changing trends in the short sale market. Three years ago there were 355 short sale closings in the area. One year later, the number was approximately 600 and this past year we saw an increase in the number of homes sold by short sale to about 855. What this means is that more banks are willing to process this alternative for struggling homeowners and the process is becoming more streamlined. In fact, some banks are realizing that the cost to litigate foreclosed properties is not worth the loss many short sale properties would help to avoid.

Here in our area, the actual number of short sale listings is going down – indicating less distress in the area and fewer homeowners with underwater mortgages. At a time when the nation’s economic outlook is still suffering and with the impending uncertainty that comes with an election year plus the shaky European economy, we are grateful for smoother short sales.

If you are dealing with this or other situations of distress concerning your property and are considering the alternatives – contact us today so we can go through your situation together and come up with a plan!  We’d love the opportunity to serve you!