The start of a new year is often a time of reflection, which over the past 12 months, held a struggling real estate market in my market area. Thankfully, reflection also brings about anticipation and optimism for the year to come. In lieu of our new year approaching, I’ve decided to put together 11 residential real estate predictions for 2011 – released one day at a time. Enjoy!
Prediction #4) A Higher Comfort Level With Walking Away…
This is a prediction that has more to do with my personal experience. I know in some parts of the country, short sales and foreclosures occur at a much higher rate. In Seattle, they are common (for sure), but I’m starting to see the trend that EVERYONE knows someone that has stopped making payments and were ready to deal with the consequences.
“I am not my credit score” seems to be a popular mantra lately.
I understand that some folks legitimately need to walk away, get a loan modification, whatever…they are legitimately stuck. However, if I’m giving a 100% honest opinion on this forum – I think those folks are in the minority of those approved for some type of loan modification, short sale, deed-in-lieu, etc. Typically, when I hear about someone that is short selling…they are doing it just because they don’t want to be underwater anymore. Either people are flat-out working the system (that’s another post) or there is a simple solution to make sure payments can be made…the spouse could get a job, the primary wage earner could leave their commission-based position & take a salary position, the owner’s could rent their home out & rent a more affordable home for themselves, the owner could rent out a room, the owner could skip that vacation, the owner could sell that fancy car & pool table (why are there so many pool tables & flat screens in short sales? Hmm…)…but for the most part, they don’t take those necessary hardships to avoid short sale or foreclosure…and it’s because…
When all is said and done – there is a dangerous trend (and mindset) of people feeling entitled to a certain lifestyle, a short sale, loan modification, or some other form of not keeping their end of the loan agreement. This entitlement will fuel a higher level of comfort in their peers to walk away from their loan agreements as well.
And it’s all a little unsettling.
Stay tuned for tomorrow’s prediction!
For help on your next real estate transaction in the Greater Seattle area, give me a call at (425) 483-1010 or visit http://www.RyanHalset.com
Real Estate Broker | Realtor ®
Boardwalk Real Estate, LLC
Phone: (206) 930-7959 | Email: Ryan@BoardwalkSeattle.com
Providing professional real estate services throughout the Greater Seattle area.
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