Today, I read an article at the Las Vegas Review Journal that claims that for the fourth consecutive month, Nevada has the second highest foreclosure rate in the whole United States of America. Initially, I thought that it is bad for the housing market (and good for investors) but our realtor claims that home values are on the rise again here in Las Vegas because of the low supply of home inventory and high demand for properties.
I am a bit worried that the present trends in the housing market might negatively affect our offer to purchase another short sale property – a duplex this time. (If you are not familiar with the term, the definition of short sale by Schwartz in California on their website is “the term used to describe a sale of real estate in which the seller receives less than the amount owed on the mortgage.”) The bank may think that with the property prices on the rise, they would rather have the property foreclosed than absorb the loss from the short sale process since there’s a possibility that they can put the property back in the market at a higher price.
Whatever the bank’s decision might be, I hope that they will try to act on our offer at the soonest possible time. We do not want to waste precious time now that the home values are on the rise. We understand that the short sale process can take a long time to close especially if there are multiple lenders (I’ve read that some took more than a year to close) but I hope that the process will be faster for us this time around (our first short sale purchase took more than six months to close).
Just some notes on real estate investing!
Investing in real estate is risky because you’ll never know what the future brings especially in this uncertain economy. Purchasing a short sale is tricky too because of the various processes involved so be sure to hire an experienced agent to help you navigate the process.
Disclaimer: This is a sponsored post. However, all thoughts and opinions are 100% mine.