Diane Orlick, CNBC Real Estate Reporter Posted:
I got a call yesterday from Scott Scredon at the Consumer Credit Counseling Services in Atlanta. He says they’ve seen a distinct change in callers. “We’re getting calls from engineers and attorneys and post graduate students,” he says. “Many of these people run through their 401Ks and their savings and start living off credit cards and then they call a counseling agency for help. So it’s a new kind of person we’re seeing today, but it’s a sign of the times.”
The largest percentage of filings has now switched from the subprime loans to prime loans, in fact prime rate defaults have doubled this year. The bulk of the trouble is centered in four states, California, Nevada, Michigan and Florida.
Will this lower prices even more? Only time will tell. For our area of east Ventura County we see an extremely low inventory of homes for sale and multiple offers on most homes. Especially the short sales and REO listings. Whether the future defaults will come out as Short Sales or Bank Owned properties still remains to be seen. In the last 4 months we have seen an increase in the median sales price for the Simi Valley area.
Will Foreclosures come out with a vengence? Time will tell.
If your having trouble making your mortgage payments, contact us at info@c21hilltop.com. We can help guide you through the options that can save you from foreclosure.
