Short Sales Impact Rental Market
By Agi Anderson // June 2, 2012
real estate Finance
BREVARD COUNTY, FLORIDA – The countless number of short sales are impacting real estate on the Space Coast in a number of ways.
Properties selling short are attracting investors who have time to wait for the slow short sale process to complete. The folks coming out of a short sale need a place to live creating a drastic change in the demand for rentals.
The attraction for investors to buy short sales and foreclosures is the demand for rentals will remain strong for at least the next five years – if not longer.
Interesting To See What Happens After Election
It will be interesting to see what will happen in 2013, after the election, after the next president of the USA makes the inauguration speech. Will the millions of foreclosures behind the scenes make their way back to the market?
For the folks facing foreclosure, there’s good news. Borrowers can stop the foreclosure process by selling their property in a short sale. The National Mortgage Settlement Act prohibits lenders from doing dual track foreclosures.
A borrower can bounce back from a short sale in a couple of years, verses the severe damage of a foreclosure, which remains on a credit report permanently.
Property management companies have become much more accommodating with helping people obtain a rental property after a short sale, after all, it is the cause of the growing rental demand.
The investors, well their banking on the fact that after the short sale, someone else selling short will need a place to live.
– Agi Anderson