Real estate in Riverside, CA is a challenging market. Currently prices are competitive while interest rates are low. Homes are becoming more affordable for first-time buyers, and there are a record number of foreclosed and bank-owned homes listed on the market. Many investment buyers are also beginning to purchase more investment properties. However, real estate in Riverside, CA is unpredictable. The market is fast-changing, so it is crucial that prospective home owners find a qualified realtor to assist them with any short sales or other home buying issues.
In 2009, California had more foreclosures than any other state. The fourth highest city in the U.S., in terms of foreclosure filings, was Riverside, CA. As of February 2010, there were close to 1000 active listings for single-family homes in Riverside. Of those listings, 139 were foreclosures. Additionally, 462 were short sales and pre-foreclosures, while 50 were not identified. Many of these foreclosures are due to financial hardships including unemployment, and until the economy turns around these numbers are not expected to decrease significantly.
When faced with the possibility of foreclosure, many homeowners may try to get a short sale on their house. A short sale occurs when the lender agrees to sell a property for under what the borrower owes on it. The lender also agrees to pay the costs associated with selling a property, such as title insurance and escrow. Home owners must get approved for a short sale and establish a hardship. The hardship must explain why they cannot afford the payments or need to move to a different area. The advantage of a short sale is that it helps to avoid foreclosures and to save credit. No expenses are needed out of pocket, and there are no consequences regarding taxes for a primary residence.
A real estate agent that is also a certified short sale specialist is an ideal candidate to assist a homeowner with a short sale. They help to negotiate with the bank for the release of the lien as well as the short payoff. This will help the homeowner to be free of their debt in order to gain a fresh start. They will also help home owners to obtain the necessary documents to get a short sale in the Riverside, CA area. These documents include a hardship letter, pay stubs, purchase agreement, tax returns, bank statements, an authorization to release information, and possibly other forms. The short sale process in Riverside also involves the coordination between multiple offices and entities, so it is especially crucial to use a real estate agent that specializes in short sales.
