“We don’t expect any type of V-shaped recovery in the housing market because of the overhang in foreclosures.”  The news from CoStar’s vice president of analytics, Norm Miller, made headlines today at the Orange County Register - and for good reason.  Foreclosures have been a drag on the housing market for the past year.  Recent headlines have made it seem that the worst was over.  Politicians and economists had been talking about a "V shaped" recovery.  Sadly, in Orange County, the facts run contrary to the commentary.

Orange County has seen its fair share of underwater mortgages.  The federal government attempted to help people struggling with their mortgage payments.  For various reasons, many people were unable to qualify for the assistance.  As a result, for many today, foreclosure seems like the only option.  According to Miller, foreclosure is a bad option not only for homeowners, but also the whole community.  Said Miller, "foreclosures and sales of bank-owned homes have not yet peaked and will continue to hold down the U.S. home prices and sales... and weakness in housing will impact retail sales and the overall economy."

Before homeowners suffer the extremely negative financial impact of a foreclosure, they should consider selling their home as a short sale.

A short sale offers homeowners the opportunity to sell their home, escape an oppressive mortgage, and have their debt forgiven.  Unlike foreclosures, short sales won't negatively impact a home owner's credit.  For more information about short sales, click here.

If you're among those in Orange County concerned about being drowned in the oncoming wave of foreclosures and you don't know what to do next, call our partner company Fitzpatrick and Prince Real Estate.  Mark, Whitney, or Blake will help you figure out if short selling your home is a good option.  Give them a call at (800) 829 5158.