Fredericksburg, TX

Foreclosures and Short Sales in Fredericksburg TX

With the recent state of the national economy, the question of foreclosures in the Hill Country, Fredericksburg, Mason, Llano, etc. often comes up. Is it a “problem” in our area? Are there opportunities for investors to pick up “bargains” at foreclosure sales?

While the Fredericksbrurg, TX and Hill Country markets are not immune to the foreclosure phenomenon, we have to a very large degree not been subject to the rash of forced sales more common on the east and west coasts. Have there been foreclosures? Sure. Very many? Not really.

Lenders in our area have tended heavily towards the conservative. Additionally, Texas home equity lending laws have been a tremendous help in preventing the kind of ridiculous, sub-prime lending you hear so much about in the media today.

If you believe, however, that our economy will continue to suffer through a quarter (or several quarters) of recession, it could benefit you to know the basic of foreclosure law should you (as a property owner) find yourself faced with financial hardship. Conversely, fortunes have been made by savvy investors who follow foreclosure trends and are able to acquire real property at “discounted” prices.

The nationwide foreclosure boom has focused more attention on a transaction referred to as a “short sale”. In an attempt to avoid the time-consuming (and often times expensive) foreclosure process, lenders are increasingly agreeing to “short sell” a mortgaged property.

By agreeing to sell the property for less than the current balance owed on the note, a lender “comes up short” on recovering the full amount. The “short” part of the term also applies to the timeline generally associated with the process as these attempts are often limited to an amount of days roughly equivalent to the time it take to process a “regular” foreclosure. A “short sale” can be a win-win for the property owner and the lender. ‘Short sale” properties are often listed with realtors and heavily promoted.

Are “short sales” common in Fredericksburg and/or the Hill Country? Not as common as in the major metropolitan areas, but they do occur. It is my opinion that this process will become increasingly more frequent as our market corrects and lenders and borrowers opt to try an avoid foreclosures.

Labels: foreclosures and short sales in fredericksburg tx real estate

posted by Jeffrey J. Williams @ 12:25 PM