Foreclosures in Town?
Posted by CityBlogWA on May 28th, 2007
Can anyone speak to the issue of foreclosures in Bellingham, Washington? Foreclosures are up around the country due to the sub-prime lending practices. Is there any foreclosure impact on real estate in Bellingham?
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Unlike many other areas, Bellingham was spared much of the ‘blood in the streets’ due to the recent sub-prime meltdown. I think we can thank being a small community, with a large University at its core, a relatively strong economy and home prices that average in the low $300k’s, along with a community that is pro “smart growth”, but anti-sprawl. Yes, we do have SOME foreclosures due to sub-prime, predatory lending practices, but not nearly as many as other areas around the nation. The main impact on our area due to the sub-prime ‘mess’ is a reduction in relocations because folks are ’stuck’ in other, more impacted, markets.
Thanks for asking!
Live Good. Be Happy. Be Curious.
-Mimi
(Hey, if you need a realtor in our wonderful corner of the world…you can visit my blog http://livegoodbehappy.blogspot.com to contact me.)
Yes, there are a few properties scheduled to go up for auction now and on any given day, but very little actually makes it to auction. We do have more REOs (real estate owned, by lender) since the majority of loans actually go through the deed of trust type of mortgage.
The economy in Bellingham is still favorable with low unemployment. Housing prices are high relative to average earnings, but home prices in the city have continued to appreciate, albeit at a low single digit rates. That and a favorable mortgage interest rate environment (currently just over 6%) makes it possible to refinance at a reasonable cost for those whose mortgage loans are up for repricing.
The problem other areas have is that the borrower owes more than the house is appraised for because of declining home values. The people who have problems here are those who kept on borrowning up all their equity and cannot sell now at a price high enough to cover all the loans plus selling costs!
Lila
(Looking for a Realtor in Bellingham, please check my website at www.johnlscott.com/lilabrumback.)