At The Short Sale Specialist Network, we just ran into our first borrower that was put into a financial hardship as a direct result of the oil spill in the gulf. The homeowner contacted us earlier today and says that he has a rental condo in Florida that he can't get rented at all this summer due to a lack of Floridia vacationers as a result of the oil spill. This situation has put him in a financial hardship where he can no longer make his mortgage payments and MUST sell the condo!
If the housing market wasn't bad enough in the Southeast, now we will have even MORE challenges to deal with! My bet is that 1.) In many areas of the Gulf, Real Estate Prices, especially for condominiums and seasonal rentals, prices will decline even further due to the crisis and 2.) This particular homeowner is just the first in a wave of many more investors, fishermen, or people involved in the tourism industry in ANY way that we will be working short sales with in the very near future due directly to the oil spill!
Has anybody else seen anything similar yet?
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The scary questions now is 1.) How much will the oil spill negatively effect house values in the Gulf and 2.) Will BP reimburse all of the home owners for lost equity or drop in house values??