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Zillow: Smaller Percentage of Homeowners Underwater in Q2

by Corey Salois

The percentage of borrowers underwater on their mortgage declined during the second quarter, but that welcome change of pace could come to an abrupt end as home values are again beginning to fall in markets across the country. Zillow reported Monday that as of the end of June, 21.5% of single-family homeowners with a mortgage owed more than on the loan than their home is worth. That's down from 23.3 percent in the first quarter this year, and 23 percent during the second quarter of 2009.

Foreclosure and Property Values

by Corey Salois

It seems that lately the buzz words in the real estate industry are"foreclosure" and "short sale". Everyone thinks that the best deals out there are the foreclosure homes. But are they really? What does foreclosure do to the value of a home and how does it affect it's marketability?

A recent MIT-Harvard study showed that Foreclosure drops a houses value by 27%. They found that when a house is sold after the death of an owner, the price drops 5% to 7% on average. When an owner declares bankruptcy, the value sinks 3%, according to the report.

So how does this affect you if you are buying or selling? If you are buying it could mean a great deal for you. Beware though of deferred maintenance on many of these homes and also the condition of them. Often when the previous owners leave they take quite a bit of the personal and real property with them, including appliances, light fixtures, wood stoves, etc. If you are trying to sell your home in a subdivision with a foreclosure in it the non-distressed homes often take a price hit as well. The study found that the value of a home drops by 1% on average if it is within 250 feet of a foreclosed home.

You can read the entire research paper if you want here: http://econ-www.mit.edu/files/3914

Different Kind of Foreclosure???

by Corey Salois

Thought that just your bank could foreclose on your home? Well now we are seeing foreclosures arise from more entities. It is well known that your mortgage company can foreclose on your property, the IRS and even the local tax department but how about your Homeowners Association? It can happen.

Read more here: http://www.cnbc.com/id/38260141

Displaying blog entries 1-3 of 3

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Photo of Corey Olofson, Broker Real Estate
Corey Olofson, Broker
RE/MAX of Whitefish
509 E. 6th St.
Whitefish MT 59937
Office: 406.863.3400
Cell: 406.253.0531
Fax: 406.863.3400