Sure, the economy has begun its upswing. Unfortunately, the holes that the recession caused some families to fall into were just too big for them to climb out of. The foreclosure rates in Georgia reached the nation’s highest in June 2012 and remain among the top of the list. They had been looking at one in 300 homeowners receiving a foreclosure notice at one point. Realtors have found a way to slow this trend and help buyers and sellers to make the market work for them.
What does mass foreclosure mean for the citizens in Georgia? Aside from the credit damage, financial drain, and the loss of their homes it is detrimental to the school systems as well. When homes are going into foreclosure at an increased rate the schools begin to lose a lot of income from taxes paid into the system. Education quality measures cannot hold up when the schools and students are not given the tools to do the job. Losing your home to foreclosure is damaging to your credit, it forces you to have to relocate with no start-up money, and it perpetuates the damage to the local economy.
The Fix
How can this trend be reversed? When refinancing or modifying your home is not an option and your hardships are not temporary, forbearance and repayment are also not appropriate options for you. Short selling your home might be your best option. People can sell their homes for less than the value of their mortgage to help them get ahead of the losses and damages. This benefits all interested parties. The seller will be able to reduce their debt. This will give them a solid negotiating place for reducing fees, interest rates and managing their losses. The homeowner has to be willing to give up their home, but it is on their terms and it is less damaging to their credit.
The school systems and local governments will not lose their income from taxes if a new family in a position to pay their mortgage and taxes moves right in. A buyer gets a great deal on a new home. The recession and its consequences including high foreclosure rates, increased interest rates and reduction in overall mortgages being awarded to potential buyers has threatened the American Dream.
Avoiding increases in low income housing and subsidized neighborhoods is in the best interest of the local government and residents. This will decrease home values and increases crime rates statistically. The local governments, banks with interests in the community as well as residents are interested in avoiding these consequences of multiple foreclosures concentrated in a single area.
If you have been struggling with the idea of purchasing a home in Georgia, now is the time to make your move. A realtor, like Norris Bishop can help you to find the right home in Georgia that stays within your budget. The advantage of purchasing a home from a seller who is trying to avoid foreclosure is that as a buyer you will benefit from paying less for a home that was at one point (and will again be) worth more than you paid for it.
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