CNN is saying the housing market could get a lot worse because of another wave of foreclosures set to hit the Tulsa real estate market. An avalanche of subprime mortgages are set to hit the market in the next 18 to 24 months.
As these mortgages reset to a higher interest rate along with higher unemployment, it is likely to cause a surge in mortgages going to default. Currently in the U.S., one in ten homes is either in foreclosure or behind in payments. The new numbers could be even more staggering.
Economists warn this could cause housing prices to decline up to 20% more before the market rebounds. Currently losses from the housing bust totaled $3.6 trillion at the end of 2008. Lawrence Yun the chief economist with the National Association of Realtors® estimates losses will likely approach $5 trillion by the time the crisis ends.
If you are facing a financial hardship with either decreased income, higher expenses or job loss, call me. Foreclosure doesn’t have to be your only option. I recently became a Certified Distressed Property Expert, or CDPE, and can help you or anyone you know avoid foreclosure by using a short sale. We can negotiate with the lender to take a reduced payment, pay our commissions, and avoid the damage of a on your credit score.
I know the Tulsa Real Estate market and job markets are tough out there. Let us help you or your friends if they are struggling.