Here’s why it’s unlikely that we’ll see a wave of foreclosures happening.
I’ve received many calls lately from people asking if we’re going to see a ton of foreclosures hitting our market soon. With everything happening in the world these days, many are assuming there will be many foreclosures and therefore many homes coming onto the market at a discount price. There are a few reasons why I think this is unlikely.
“Foreclosures take much longer to work through than the typical closing process.”
First, banks are far more knowledgeable today than they were in 2008 when we saw so many foreclosures. If a foreclosure does happen, banks today would much rather spend the money that an investor would to fix up a home, and go to the market with a retail price. Banks and lending institutions are also providing homeowners many more options these days, especially during the health crisis. One option is that homeowners can now delay payments without being in default.
Finally, foreclosures take much longer to work through than the typical closing process. Sometimes it takes 90 days to close, and in most cases, it takes a year or more for a foreclosure to be processed. Sometimes the house will even revert back to the homeowner. If you’re considering delaying a home purchase because you’re betting on foreclosures to appear, it’s highly unlikely.
Sellers are still getting top dollar for their houses, and there are more buyers in the market than there are sellers. We’re seeing an increase in multiple-offer situations, and homes are selling quickly. Don’t wait for something that might happen and miss out on the opportunities available right now.
If we can help you in any way or provide some advice about how to sell your house for top dollar, be sure to give us a call or send an email. We would be glad to help you.
