The Wall Street Journal has reported that the Rising Prices of Homes has drastically shrunk the ranks of Underwater Borrowers”. Source: The Wall Street Journal February 25, 2013. To read the full article click the following link: http://blogs.wsj.com/developments/2013/02/21/rising-prices-shrink-ranks-of-underwater-borrowers
In fact, according to the Article, and citing from reports by Zillow, “around 2 million homeowners moved back above water last year”.
So what does this mean for our South Florida market. Well, what once was considered a short sale, may in fact now be a regular sale. Sellers that were forced to sell their homes because of trouble making mortgage payments due to either having entered into subprime loans, adjustable interest rate mortgages and fast approaching balloon mortgages, may now have equity. This equity translates into the ability to refinance their home and take advantage of low mortgage rates OR sell their home and make a profit.
“While the looming release of shadow inventory is expected to affect prices and perhaps “burst the bubble” once more, South Florida home owners can take advantage of the rise in prices to set their objectives in place”. Jacqueline A. Salcines, Esq, real estate attorney.
Now is the time to consult a real estate expert to find out what your home is worth and decide whether to sell the home or refinance. In reality, nobody knows how long this new bubble is going to last and one might as well take advantage of the life preserver.
LAW OFFICES OF JACQUELINE A. SALCINES, P.A.