Mortgage trends » Sellers compete with foreclosed homes
Risky foreclosures could help savvy sellers
The cloud over foreclosures comes with a silver lining for homeowners looking for an edge when they sell real estate in a strong buyer's market.
The good news for sellers is that foreclosures look risky again. Savvy sellers -- at least, those who have equity and are current on their house payments -- might be able to turn the tables and use the robosigning follies to their advantage, experts say.
"I am not seeing buyers afraid (yet) to buy a foreclosure," says Elizabeth Weintraub, a real estate broker in Sacramento, Calif. "They should be."
The robosigning controversy has led to a slowdown in foreclosures. The lull is likely to be temporary and sellers' advantage from a drop in foreclosures potentially fleeting, with many markets still flooded with distressed properties, according to Katie Curnutte, a spokeswoman for Zillow.com. There might even be a boomerang effect later in the year after banks get back up to full speed again with auctions, she says.
For home sellers, here are some tips on how to seize the initiative during a rare (relative) lull in the foreclosure crisis.