Vacation Properties

With the vast number of foreclosures hitting epic proportions, lost in the maelstrom of bad news are the great numbers of supposedly wealthy individuals or upper class families that are facing foreclosure on their investment, rental or vacation properties. There are a great number of factors and situations that will need to be addressed during these types of foreclosures. For second home properties, many owners financed these through second mortgages on their first homes or the famous no money down loans in the mortage heydays of a few years back.

If it was financed through a second mortgage, the owner has some serious issues if he wants to keep his first home, let alone his second home. If Congress, pass their latest legislation there will be an incentive to get a refinancing done as soon as possible to get the $3000 tax credit for refinancing. Congress is also considering increasing the tax credit to any homebuyer to $15,000, not just someone who hasn’t bought in the last 3 years.

That could fuel speculation into the foreclosed vacation and second hpme market that could keep prices from sinking much further. As rentals are considerably down on the East Coast in places like Virginia Beach, Outer Banks, and Myrtle Beach, we are going to see a great deal of property on the market soon unless rental prices drop significantly. People with great rental history on their properties may have to lower their own prices just because of the excess inventory on the market in these areas.

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