Montgomery Real Estate Feels the Effect of Foreclosures

Alabama Foreclosure and Real Estate News

 Article Abstract:  With growing AL foreclosure woes there may be an upside. While a foreclosure may be a tragedy to one, it is an opportunity for another. First-time homebuyers can truly find an affordable home through a distresse3d property. Fortunately for them, the Montgomery foreclosure process is some of the swiftest in the nation. Buying a foreclosure in Montgomery can be a much smoother process then elsewhere in the state or in the nation. For the entire Montgomery foreclosure news article, please continue reading below:

_____________

If you're looking to buy a new home, the Montgomery area is a buyer's market.

Local realtors say there are more houses on the market than in recent memory. But there's a hidden reason behind many of those 'for sale' signs - foreclosure.

Alabama has one of the fastest routes to foreclosure compared to other states and that means if you're in trouble you're out of your house quickly.

It doesn't matter which neighborhood you pick. There are a lot of 'for sale' signs springing up in people's yards.

"We're feeling the pinch. There are a tremendous number of homes on the market right now," said Taylor Jernigan, president of the Montgomery Area Association of Realtors.

So many lately, the inventory is glutted. Right now, the listings show there are about 36-hundred houses on the market, compared to about 1700 this same time last year.

That's having an effect on sellers.

"It is taking longer for people to sell their homes," Jernigan said, "and they're getting a slightly lower price."

Why is the inventory so large?

Part of it is foreclosure. Jernigan admits a lot of people got caught up in the subprime lending craze.

"They got very good deals on loans and a lot of people got loans on houses perhaps they shouldn't have - shouldn't have bought as large a house with as large of a loan," he said.

Now the bubble is bursting.

"A lot of people can't refinance their homes at as good a rate as they had, and that's leading to foreclosures," said Jernigan.

And, when you lose your house, lenders can move quickly to get you out.

Under Alabama law, a mortgage holder can force you to leave 30 days after it advertises your loan is in default. Compare that to New Hampshire, where it's 60 days, or Florida, where default buyers get 180 days. Or New York, where it takes, on average, 12 to 19 months to toss someone out.

If you're on the verge of losing your home, Jernigan points out you can still rescue the situation.

Finding financing is the key, of course; but under Alabama law, you have up to a year to reclaim your house if it isn't sold yet under foreclosure.

Jernigan says right now, Alabama is doing well compared to other states in the foreclosure crises. He says we're somewhere in the middle of the pack and no where near Florida or California.

The Montgomery Area Association of Realtors also says 2006 was the second highest revenue year on record. That's because of a higher average price on houses sold in the area.

Reporter: Chris Holmes

For more related news and articles please go back to the Alabama Foreclosure home page.

Article Source http://www.wsfa.com/Global/story.asp?S=6957919&nav=0RdE