FORECLOSURES CREEPING IN ON CAMDEN

Posted in General, May 29th, 2007 |

Empty creaking houses are of late a common site in large metro areas. As a result of the lending standards of mortgage companies, there was a boom in the real estate market. It snowballed into increase of foreclosure rates.

The effect of foreclosures is being felt outside the zone of real estate markets and residents of upscale sub divisions outside Atlanta are seeing cracks in their social fabric.

Investors, in some areas are drawn by foreclosures to buy them and then to rent them out to balance costs. This has resulted in the residents frequently hopping in and out leading to an increase in crime rates. The atmosphere of the entire neighbourhood together with the schools consequently takes a nosedive.

Fortunately till now these effects have not touched Camden County, down south. This is largely because the mortgage companies of Camden are good at their job. They look into the interests of potential buyers and accordingly give them the offer that they can afford. It must be taken note of however that Camden has a relatively smaller population who come under the sub-prime market group. Also those who have a bad record do not qualify for alternative financing like interest-only loans or adjustable rate mortgages (ARM).

But winds freely move about and to some degree Camden too has been affected. It can be put this way – the local real estate has been slow in keeping pace with national trends. Sales have slowed down and more ‘for sale’ signs are coming up throughout the county. Currently there are 498 houses up for sale.

Taking an overall view it may be opined that till now the county has been fortunate. The absence of a large sub-prime markets point to the fact that most of the residents are able to afford their property, even at the present prime rate. The latter falls between six and seven. However it is continuing to push upwards.

The population too is expected to grow quickly in the next two decades. Developers, anticipating good days, are already ready with plans. Some are already digging and building large complexes with homes for the higher ups.

Time alone will tell what impact this increase of expensive homes will have on the real estate market. Mortgage companies will be wise to be tight fisted about lending standards to avoid problems with foreclosures in the near future.

Via