Tips on how to keep afloat in an unstable housing market
About three years ago, northern Nevada experienced a boom in the housing market which managed to stabilize about six months ago, leaving some homeowners in a difficult financial situation.
Loan Officer Sonny Lopez of Mortgage America in Reno noticed an increase in the amount of foreclosures in the Reno/Sparks area in 2005. Lopez said he believes the increase in foreclosures in this area is due to “the cost of living going up and the retirement not matching it,” he said, noting that the greatest group affected includes those in their 50s and 60s.
“Most people believe they’ll get caught up and they’ll fall behind within six months,” said Lopez. At this point, an investor comes in and offers the struggling homeowner money to move and pays off their mortgage note, which is the remaining amount owed in the original purchase price of the house.