Few real estate markets can sustain extreme price increases for a prolonged period of time and Reno-Sparks is no exception. After years of sky rocketing prices, the real estate market has cooled.
The price correction is often followed by an up surge of foreclosure activity because homes have decreased in value. When anxious buyers leveraged their buying power with 100% financing, some in sub prime markets, they now have little recourse. Some homeowners are "upside down" - they owe more than the value of their property.
If you find yourself in this spot, without other reserves, you can request that your lender participates in a short sale. If the lender agrees, the lender accepts less than full payoff on the property. If the lender says no, foreclosure may be the end result. When the foreclosure process is complete, the property is sold at a Trustee's Sale. If no one shows up to bid on the property, the lender takes back the property as an REO or real estate owned. The lender then sells the property and there are REO brokers, like Jenny Kottel, to handle the transactions.
For more information on foreclosure, short sales or buying distressed properties, please send
your email request to jkottel@dicksonrealty.com.
I am experienced at handling short sales, pre-foreclosures and REO's.