What Do Underwater Mortgages Really Mean to a BUYER?

Last week CNN Money and Zillow reported “Despite rising home prices, more than 30% of borrowers, or close to 16 million homeowners, were underwater on their mortgage during the first quarter …”

There are two things BUYERS should think about when faced with this market. The first point is to look in the mirror.  A seller may view a buyer as a person with problematic financing, so either show up with a cash offer or seek pre-approval before you go shopping. Why? In these days of declining inventories and competing offers in Naples real estate sellers may view offers with a financing contingency as a problem and they may have more than one offer.  So if you are not a cash buyer take the time to seek pre-approval.  Pre-approval does not take long and you may do yourself a big favor.

What’s the second thing to know? The seller of your dream property may be underwater. This may make them a lot more stingy on accepting any offer which will require them to bring a check to the closing. So what to do? First have your realtor check it out. Sometimes the other realtor will have permission from the seller to disclose this information. Another legal method is to have your realtor check public records for the property and look at the original purchase price and do a little estimating. Know your seller’s situation – you may have to move on if they are unwilling to drop their price.

Good luck out there and know your marketplace – neighborhood by neighborhood.

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No legal, investment, or tax advice is being given in this Blog.  Consult with legal, financial and tax professionals before acting on any real estate transaction.  Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
NaplesBestAddresses.com
Facebook: NaplesBestAddresses
Twitter @mcgoebel
Naples Best Addresseses – Where The Best Address in Naples Real Estate Is Yours

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