Foreclosures.com, a company that offers training programs, lists of pre-foreclosure and post-foreclosure properties, and other support services for foreclosure buyers, reports that the strong home sellers’ markets in northern and southern California are keeping home prices elevated and are allowing some troubled homeowners to avoid foreclosure.
Alexis McGee, president of Fair Oaks, Calif.-based Foreclosures.com, states that the troubled homeowners can essentially sell their way out of foreclosure and save their equity. “They can sell their way out of trouble, getting cash for their equity.” While the sales volume in northern California markets dropped about 35 percent from December 2003 to January 2004, the median price in that part of the state dropped about 1.6 percent.
This low inventory of homes is helping to keep prices up. At the same time, though, Foreclosures.com notes that the current affordability index projections are that only about 19 percent of the state’s residents can qualify for a median-priced home in California. The company advises that given this market, it can be better for homeowners facing foreclosure to sell at a discounted price than to lose everything through a foreclosure process.
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