Posted on Sep 8, 2012 in Roseville and Sacramento Short Sale FAQs

Hi everyone, I’m Mark Peek with Keller Williams Realty, one of Roseville and Sacramento’s leading short sale teams. Today I wanted to talk about the recent news that home values are increasing. I wanted to talk about this because if you are underwater you may be wondering if you should wait for the market to come back and the values to come up or should you complete a short sale on your home. The answer to this question depends on your situation. If you are not that much under water, it might be worth waiting as the market starts to recover. There is no guarantee how long it’s going to be but right now we have the lowest interest rates on home loans that I have ever seen. They have been averaging around 3.5%. Money is very cheap right now and so this is causing the value of homes to increase. We also have a lower inventory then we used to have so if you put those two things together, we are seeing pricing increases and that’s why.

Now the question is whether or not you should wait for the market to recover? I want to encourage you to check out the short or stay calculator on my website and it will tell you how long it will take for you to break even. This means how many years you will make payments before your home and the money you spent breaks even. The problem with your monthly mortgage payments is most of that goes to pay interest. The result is if you are $100,000 or more under water, most of my clients are looking at 10 plus years to recover. Now if you consider completing a short sale and you close that short sale in around six months you can potentially buy another home in two years from the close of that short sale. So in two and a half years, you can buy a home at whatever the interest rates will be in two years and at lower pricing than your house especially if you refinanced. So take that into consideration with the news that’s going on. Also consider this, those low interest rates are not going to be that low forever. So how long before those rates begin to increase and what is that going to do to the affordability of housing? As those rates increase so do the monthly payments and as those monthly payments increase the affordability starts to go away. Again, I’m Mark Peek with Keller Williams, your Roseville and Sacramento short sale specialist and I’m here to help. If you have any questions about your specific situation, hit start here at the top of the page or give me a call. Either way I will follow up with you and answer all the questions you might have. Thanks and have a great day.

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