The decline of the housing market was tough on everyone, especially those who lost their home to foreclosure or chose to go through a short sale. Do they have to rent for life? What are their options?
Short-selling your home or going through foreclosure doesn’t mean you are black-listed from getting a loan for the rest of your life. In many cases, someone who lost their home might be financially ready before they are emotionally ready to buy again.
Buying makes sense for lots of people. We are starting to see a shift in the market where owning your own house or condo makes more financial sense than renting. By that I mean your PITI (principal, interest, taxes, insurance) payment is less than it would be to rent a comparable property. Once it is less expensive to own than rent, we will see the housing market start to rebound. As an owner, you get the added benefit of tax write-offs for mortgage interest and other related expenses.
So maybe you just lost your home to foreclosure, can you jump in and buy another home in 6 months? The answer is likely “no,” but don’t lose hope. A recent article from Zillow.com talks about the required wait time for most lenders before they will issue a loan to someone coming off a foreclosure or short sale. A quick takeaway from that article is that you will be able to buy after a short sale much sooner than you would be able to after a foreclosure (in most cases). To read that article and see the timetables, CLICK HERE.
If you are facing a foreclosure, look into a short sale! The team at Milligan Realty.com help negotiate more short sales than other real estate companies in the area. Our experience goes a long way in making your short sale as smooth as possible.
The real estate market is down right now, possibly as low as it is going to get. Prices coupled with low interest rates makes it a great time to buy! The market will likely be in a similar state through next year also. If you facing a foreclosure or short sale, and want to buy in the future, make sure you take the necessary steps to be able to buy again as soon as possible. A few decisions now might shorten your “wait time” by years!
For more information about Norwalk real estate, or foreclosures and short sales in Norwalk and the surrounding area, contact Todd by visiting www.NorwalkRealEstate.com