But, I guess a $20,000 loss is a LOT better than a $200,000 loss. Even Cramer says sell your losers. It's just tougher when you live in your loser. Oh, watch for companies who'll be preying on these near-foreclosure situations (like "We Buy Ugly Houses" and this dolt pictured here...)
Rise In Short Sales Indicates Troubled Housing Market
More Cases Being Seen Where Sellers Must Bring Money To Table
CLEVELAND -- A lot of people rely on the value of their house to bail them out of some circumstances, such as losing a job, going through a divorce or suddenly taking ill.
However, a tough economy and a flat real estate market may leave you short when the deal is done. People are selling their homes for less than they owe, and in some cases, for less than they are worth.
"We are seeing a lot of people having to bring money to the table. They are doing it, they make the sale happen, but they walk away with nothing," said White.
Even mortgage banker Thom Rankin is closing short sales, which just a few years ago were considered rare.
"It concerns me that we are now seeing this happening, and I have been doing this for 30 years, and I have never seen short sales come as readily as these did," said Rankin.
Short sales indicate trouble with the economy and housing market, because people sell short to unload property they can no longer afford, or to avoid foreclosure.
Nobody keeps statistics on how many short sales close each month, but lenders and Realtors say they are increasing at an alarming rate.
Forty-three percent of homebuyers last year put no money down on their houses. That means they have little to no equity if they have to sell short, or worse.
February 19, 2006
Posted by blogger at 2/19/2006