According to the National Association of Realtors the subprime loan crisis has taken center stage in the real estate market and has effected many areas of Contra Costa County.
These loans started off usually with a teaser for two years where the monthly mortgage rate is quite low. After the two years the rate of these loans adjust and rise sharply which has caused a financial hardship for a substantial amount of borrowers.
During the past two years the California real estate market was “Hot” meaning the borrowers banked on equity increasing in their home and before their loan adjusted they could refinance and roll into an fixed rate loan.
Absent that robust market subprime borrowers may not have any home equity available as a safety cushion. Without the options of refinancing or selling, subprime borrowers in financial trouble are falling into default.
There is an option if you fall into the above category. It is called a “Short Sale.” This is where the bank forgives part of the debt that is owed to them by trying to sell the home before the foreclosure process.
For more information about listing your home as a “Short Sale”, Team Elite is having a seminar on this process on June 14th in Brentwood.
If you are interested in attending please contact “Team Elite”-Judy Hazen or Jill Proctor at