Arlington VA Foreclosure Question
Arlington VA foreclosure question that you might want to consider… I have a client deciding between a 3 year old condominium at Clarendon 1021 and a brand new condo at The Phoenix at Clarendon. We noticed that there are several short sales that have come on the market recently at Clarendon 1021, which has adversely affected home values in that building. With short sales the homeowner attempts to sell the home for less than they owe on it. Typically it is advertised for less than market value so that it can sell quickly before they are foreclosed upon. My client was curious whether the same thing is on the horizon at The Phoenix.
When Clarendon 1021 originally started selling, a large number of buyers were utilizing low down-payment, no down-payment, adjustable rate and interest only loans. Some were even using reverse amortization loans where the principal balance actually grew every month. Buyer confidence was so high in 2005 that everybody buying a home thought they would see double digit growth year-over-year. Obviously that didn’t happen.
Now that lender restrictions have tightened, many buyers are putting money down and are sticking with a basic 30 year fixed loan. There are a lot of signs that point in the direction of property value appreciation over the next few years in Arlington, but these home buyers are not depending on it. They will have equity even if the market were to stay flat because they are putting money down. They won’t be jarred by expirations on their loans. They are going to have the luxury of selling when they are ready. In summary I find it unlikely that when my client decides to sell her condo at The Phoenix she will have to compete with short sales in her own building.
-Adam Gallegos
Leave a Reply
Real Estate Search
Meet Arbour Realty
Related Posts
Categories
- 365 Things to Do in Arlington
- Arlington Real Estate
- Fairfax County Real Estate and Community
- Northern VA Real Estate and Community
- Home Buying Advice
- Home Selling Advice
- Investment Spotlight
- Green Homes
- Green Ideas
- Consumer Advice
- New Construction
- Video – Market Update
- Arbour Realty
