Some realtors are worried that this will reduce neighboring home values. Is this true?

A:

No.  The concern stems from the incorrect belief that properties are being sold at below market value and so will factor into the “comps” – what comparable homes are selling for in the area – when the price of other homes is determined.  This is not the case.  These homes are not in fact being sold.  The loan is being sold, or taken through eminent domain.  The house itself will not be going through the sale process.  This program will in fact bolster home values since it will reduce the number of foreclosures, thereby preventing further negative impact on area home values.


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