Does Stopping Foreclosures Really Benefit The Real Estate Market?

Collier Swecker video blogs about how some of the large Lenders have frozen foreclosures and he gives his opinion about the effect that these actions will have on the real estate market in Birmingham Alabama. Even though many foreclosures have been halted by lenders such as Bank of America and Chase, almost all of the foreclosures that are currently pending and those in the pipeline to be foreclosed on will eventually be foreclosed upon because only a handful of loans are ultimately going to be found fraudulent or improperly foreclosed upon thus resulting in the eventual lawful foreclosure of most effected loans / homes in the Birmingham AL real estate market. We are only delaying the inevitable for homeowners that should not be sent mixed signals from the Government and the Lenders. This delay of foreclosure proceedings should see average sales prices in the Birmingham market increase a bit, if only temporarily, due to the absence of foreclosed homes being sold. The average sales price in the Birmingham market as a whole has been dragged down a lot over the last 3 years because of the large number of short sales and foreclosures. The good news for Birmingham has been that non-distressed properties have held their price well over distressed properties, which is a different situation than that found in markets like Las Vegas and Miami. In other words, non-distressed properties have not fallen at even close to the rate of distressed properties like short sales and foreclosures. Sellers in the current market may actually benefit by receiving a little more for their home than they would have if these foreclosures had not been halted. This is due to more demand for housing by buyers because there are fewer homes on the market. The only concern that I have there is that it seems like Buyers are sitting on the sidelines with their cash, waiting on the outcome of the mid-term elections. If you are a Seller, just remember that just because many foreclosures cannot be sold currently, this does not mean that you should raise your price or expect more concessions from buyers. This economy still stinks and Buyers do not have any more disposable income than they did two weeks ago.  I hope that the banks come together and work on a plan to put the foreclosures on the market in such a way that the Birmingham market does not get hit with a flood of foreclosure inventory at the start of what I hope to be a recovery in 2011. If you have any comments or questions about some of the Lenders like Bank of America and Chase temporarily stopping foreclosures, email me at Collier@MegaAgentRealEstate.com or visit my website at www.MegaAgentRealEstate.com.

 

About Collier Swecker

Collier Swecker is a licensed real estate broker, attorney, blogger, speaker and entrepreneur. He is the founding partner of the Mega Agent Real Estate Team at RE/MAX Advantage which ranks as one of the top selling real estate teams in Alabama. Collier also acts as a business and marketing consultant for small business start-ups.

Collier graduated from Auburn University (B.A., 1998), Cumberland School of Law (Juris Doctor, 2002) and Washington University School of Law in St. Louis (Masters of Law in Taxation, 2003). Collier was the principal partner of the law firm Swecker and Sparks LLC for 3 years before leaving the law practice for real estate development and sales.

Collier is a native of Yorktown, Virginia and currently resides in Birmingham, Alabama with his wife, Amanda Capps Swecker. Collier & Amanda are the proud parents to a beautiful daughter, Julia Abigayle. They have one dog named Kramer.

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