Minneapolis MN, Homes being lost to “Strategic Default”
Minneapolis MN Homes
The buzz word in Real Estate this year is “Strategic Default” Its becoming more clear that financially capable homeowners are walking away from their mortgages due to the massive losses in equity. Rather than liquidate other investments or attempt to do a Short Sale many home owners with significant assets are opting for a more calculated financial decision.
Rather than fight until the bitter end and wait out the market for an unknown amount of time to recover equity, homeowners who choose to default on purpose simply stop making payments and walk away.
What does this mean for homeowners in Minnesota?
Possible declining values in your neighborhood is the simplest way to sum it up. The foreclosed home will always sell for less than a traditional home and force a traditional home to adjust price to be more attractive to the value conscious buyer. Some experts predict that this will cause prices to decline by as much as another 20%. More realistically we are assuming the true bottom would be at most another 10% decline due to an improving job market and strong economy here in Minnesota.
For further information on the Minnesota Housing Market and Homes for sale in MN visit www.joeandcindy.com