FINDING GEMS IN THE LUXURY REAL ESTATE MARKET

FINDING GEMS IN THE LUXURY RESIDENTIAL
REAL ESTATE MARKET
by Carl Agard

article in Moves Magazine Winter 2007 Edition

It has been a great run for over a decade, but the real estate market has just changed. The sub prime mortgage collapse has lenders tightening their criteria more than ever. Many areas across the nation are experiencing record highs in foreclosures. What was a frenzied seller’s market has quickly changed into a buyer’s market. The high-end residential real estate market is no different. As interest rates rise, mortgage rates will also, especially those that have an adjustable interest rate. This increase in monthly payment will put pressure on financially exhausted homeowners that are barely making ends meet already. Some will see their monthly payment double.

WHAT IS A SHORT SALE??!!

Short Sale
A Short Sale is a process during a pre-foreclosure procedure, whereby the bank will accept a lower percentage amount of the face of the loan, as well as deduct the interest and penalties, due to the financial hardship of the homeowner. These houses are generally owned by people who have purchased their home with little, or no money down, or own homes that are in areas that are very slow to appreciate. They are also homes that are distressed to the point of value depreciation, or cannot be compared to other homes in the area because of the disrepair.