Foreclosed Homes Bring Financial Tears In Bowie Area

August 10th, 2007 | Tags: Foreclosed Homes

Bowie region is keeping pace with the national foreclosure forward march steps. The speed is likely to go up if the real estate sales market continues to dip with simultaneous increase in sub-prime mortgage rates. Estate agents, brokers and attorneys all share the same opinion.

Bowie is suffering mainly because people with modest incomes had taken possession of spacious luxurious homes through the sub-prime mortgage route. It should never have been allowed to happen from the very beginning. In 2007 there has been a 20% in bankruptcy filings. Previously health care problems were the main cause for bankruptcy suits. But today the reason is failure to meet increasing mortgage dues.

Sub-prime loans were availed of without any stipulation of down payment. This type of loan does not fall within prime ‘A’ category of loans and is mainly for those who do not have good credit creditability. In the sub-prime loan there is a two-year grace period wherein the rate is low and mostly comprises of only the interest. But afterwards the monthly instalments amount increases and sometimes doubles. Once this happens there are limited options of either selling off, refinancing or applying for bankruptcy.

With the house market at an all time low it is not going to be easy to raise funds through selling the property. Yesterday during the housing boom period, the units would get sold within days. But today it is difficult to get a buyer even after ten months. The situation is worsening with more and more houses coming into the market.

Refinancing is also difficult. Borrowers have stretched their resources to the limit and the current value of the house will hardly cover the dues. The situation is so grim that the mortgage industry is feeling shaky. This is telling on buyers with excellent credit. Mortgage companies are just folding up without funds flowing in and property that is not worth much.

However one local agent sees a positive point in Bowie. Here the situation is comparatively better than other regions like Northern Virginia and Montgomery County. Appraisers have been cautious in Prince George’s County causing investors to shy away in general. Now the latter trying to wiggle out of a bad situation are flooding the market. To substantiate this claim details of Bowie foreclosed homes are still unavailable. Some data collectors show an increase in foreclosure listings.

Search Images:

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.