A Word Of Caution For People Facing Foreclosure

March 26th, 2008

The foreclosure crisis continues to increase in the county and across the nation. According to experts, there has been a 100 percent jump in the volume of foreclosure since last year. Reports on real estate in many of the big cities, show quite a number of losses incurred on double digits in home values.

It is expected that this year, some of the markets might reach a stable condition. The local market is, however, not feeling the burden of the foreclosure crisis thanks to both investors and a lesser number of loans with high risks. The investors in the world of Grand Strand real estate play a very important role. They own almost 70 percent of the real estate market in the locality. Two years back there had been a large sales push, during which the investors bought high. However, they put in only about 10 percent money, which was their own. When there was a shift in the market, they left quite some amount of unsold property and walked away. The prices of those properties are now falling.

Tom Maeser, an analyst of local real estate said that both the average prices and the median prices have started coming down. The fact that it was not observed before is quite unusual, but this generally happens before there is a recovery. Maeser further said that he expected the recovery to happen soon. According to him, a correcting mode would begin when summer comes to an end, which is in another six months and then the market would be more normal. The Market Common is pushing the market forward, which is new and situated on the old Air Force Base. The selling out of homes also increased.

Larry Wilson, a real estate agent of a property in Market Common said that he is selling three phases, among which one has been sold out, one is about 40 percent sold and another is left with 4 units which are yet to be sold. A model could have about 150-200 on a weekend. However, people continue to face foreclosure and msn.com gives some suggestions to combat it. The budget should be analyzed and there should be a proper spending plan. It is also advisable to take professional help and there are credit companies, which offer counseling. Refinancing can always be an option and payment options should be explored with the lender. According to reports, there have been nearly 3,000 sales of residential properties in the last one and a half years.