Foreclosures Effect On Buyers Sellers – About a month ago, several major lenders suspended foreclosures and that could effect the outlook on future buyers and sellers.
Homeowners in foreclosure who hope to sell may get a “temporary break” before the process moves forward. That would allow them to live in their home awhile longer and potentially close a short sale. Or, they could negotiate a loan modification to avoid the eviction.
Since the real estate market bust, banks and homeowners will need to negotiate.
Home sellers who aren’t in foreclosure also may benefit as banks take foreclosed homes off the market. The diminished supply could put upward pressure on prices. Sellers may need to act quickly if they want to take advantage of that window.
Potential homebuyers who previously considered shopping for foreclosures may be scared off by the recent negative news reports. But there’s no reason for buyers to delay their plans as long as they can get a clear title to the property and title insurance.
However, some buyers remain worried. Buyers in Texas are concerned about recent developments, even though the state doesn’t require foreclosures to go through a judicial process. Texas Attorney General Greg Abbott has demanded certain lenders forestall all foreclosures in the state, though it’s unclear how many will cooperate.
Buyers are looking for foreclosure properties because they perceive these homes to be “a good deal.” But now, the prospect of fewer bank-owned homes being for sale could prompt them to delay their homebuying plans.
The bottom line is that affected housing markets are now in a state of heightened uncertainty that presents both risks and opportunities.