New data from Zillow shows that discounts many home buyers are expecting on foreclosed homes are starting to disappear as foreclosures decline across the country. The Washington Post reports that as the economy slowly improves, fewer homeowners are defaulting on their mortgages and banks are more inclined to go for short sales or loan modifications.
While foreclosed homes are usually listed for less than non-foreclosed homes on the market, the national discount on foreclosed homes in September was only eight percent. In 2009, the average discount was 24 percent. However, this is not true for all parts of the country. Large discounts can still be seen in Pittsburgh, Cleveland, Cincinnati, and Baltimore, which still have median markdowns in the 20 percent range.
Areas that were deeply affected by the housing crisis, like Las Vegas and Phoenix, are seeing slim to almost no discounts on foreclosed houses. The lack of markdowns is considered a good thing by economists, as it shows that there are less foreclosures on the market and this creates competition. Many potential buyers have become frustrated because they expected better discounts, some real estate agents say, but it shows a promising future for the housing market.
If you are struggling to pay your mortgage and the bank is threatening foreclosure, an experienced foreclosure defense attorney can help explain your legal options. Contact the legal team at Greenway Law to find out how we can help you.