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(EMAILWIRE.COM, February 12, 2007 ) ( EMAILWIRE.COM, February 12, 2007 ) SACRAMENTO, CALIF – Much attention is being given of late to the residential real estate market in California. One of the hottest topics is the relationship between “exotic” mortgage products and foreclosure. In the Sacramento area, like in most of California, homebuyers have become dependent on adjustable rate financing programs to buy houses. Without these products many homeowners would not have been able to purchase homes which have more than doubled in value since 2007. Whether or not this situation proves to be a good thing for borrowers and the state’s economy remains to be seen, but ominous signs abound. In 2004 65% of home purchasers in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo, and Yuba counties used adjustable mortgages to buy their house. Many of these loans will “adjust” this year, bringing higher payments. Some borrowers will not be able to afford the higher payments and will look to sell or refinance their homes. But, in a falling real estate market, many of these families and investors owe more than their homes are worth. One option for these borrowers is to utilize a process known as a short sale. A short sale is accomplished when a borrower, or their representative, negotiates with a bank to accept less than the amount due on a mortgage to settle the debt. The incentive for the lender is that they avoid the necessity of initiating foreclosure and taking back the house. Lenders typically do not want to take back a property from a borrower who is in default, especially if the debt is greater than the fair market value of a property. Lenders often prefer to work out a new payment program with borrowers in default, or those who are about to go into default, but for those who want to sell their house fast a call to an expert in short sales may be the smartest things for homeowners in trouble. “A short sale can be to everybody’s benefit when borrowers are unable to continue paying their mortgage,” said Patrick McGilvray, J.D., President of http://wwwTheHomeBuyingCenter.Com. “Banks and other mortgage lenders would sometimes rather settle for less than what they are owed than to take back a house in a falling real estate market.” Contact:Patrick McGilvray, J.D.manny@thehomebuyingcenter.comTel: 916-920-3278 http://www.thehomebuyingcenter.com
Joseph Nchor
info@groupweb.com 
Source: EmailWire.com
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