Post by John Boles
Sounds like good news right? The numbers are down in line with some of the seasonal trends we have seen in the last few years. While some folks may be saying this is the sign we have hit or are nearing bottom; folks are still going into default, banks are still foreclosing, there is shadow inventory that needs dealt with so we have still have plenty of snow available to keep that snowball growing or at least maintaining its size.
In working with clients sometimes they are trying to decide if they should borrow money, go into debt, etc to hang onto the house. You may be considering the same in light of some of the less negative news in the press.
It isn’t unheard of for my clients to be 40-60% underwater on their properties. It makes sense to consider the big picture. I have found it beneficial to walk through the scenario with my clients to see what makes sense.
Lets say we have the following that is a typical scenario:
Value at peak 4 years ago (loan amount) – $250k
Current Value – $150k
Depreciation over 4 years – $100k
Average appreciation in a healthy market (for our area) @3%
The question is how many years in a healthy market will it take to recover the 40% loss?
A long time.
I am not suggesting that home owners should choose to default on their loan because they are under water. I won’t ever tell a home owner to stop paying their mortgage. But borrowing from credit cards, family, personal loans, etc. at some point seems to be throwing good money after bad.
For more information on short sales in the Boise, Idaho area please give me a call - John Boles - 208-830-6185 or shoot me an email at email@example.com and I'd be happy to talk with you about your particular situation.
Kasey Boles, Managing Broker
REALTOR®, CRS, ABR, ePRO, SRS, SFR, GRI
John Boles / 208.830.6185 / firstname.lastname@example.org
James Gannon / 208.570.4048 / email@example.com
Kasey Boles / 208.830.6186 / firstname.lastname@example.org
Boise, Idaho Real Estate
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