Lenders foreclose, property owners evictQ. What is the...

REAL ESTATE Q & A

January 03, 1993

Lenders foreclose, property owners evict

Q. What is the difference between foreclosure and eviction?

A. "An eviction is an action taken by a landlord to require the removal of a tenant," said Irwin Landes, a partner in the New York law firm of Bower & Gardner. Such an step is usually enforced by a sheriff or marshal when a court orders it.

On the other hand, a foreclosure is an action brought by a lender against an owner of a property, generally for failure to pay money due under a mortgage.

"After a foreclosure is completed, the usual result is an eviction by the new owner who bought the property at the foreclosure sale, who is very often the lender," Mr. Landes noted.

Steady climb in property sales forecast

Q. With President-elect Bill Clinton soon to take over leadership in Washington and a growing economy, what direction will the real estate market take in 1993?

A. Most regions of the country will experience a significant turnaround in the real estate market and the residential property sales curve will start a steady climb, several seasoned real estate professionals predict.

The growing optimism has surfaced since the election. Economic indicators also are pointing in a positive direction, and consumer confidence in the economy is building. Mortgage interest rates also remain close to a 20-year low. And there are a growing number of special home financing mortgage plans that make home buying more accessible to more families.

Also, the pent-up demand for homes by potential buyers who have been reluctant to make the move is on the rise. And home prices have dropped during the past couple of years in some areas.

In January the holidays will be behind us, expectations will be high for the performance of a new president and many people will finally be ready to take action to achieve that cherished goal of homeownership.

Families will be more inclined to take advantage of favorable home-buying conditions. It's an opportunity they don't want to miss, particularly the young, first-time buyers seeking a home with a modest price tag.

Housing is expected to get priority

Q. How important will housing be for the new president and his administration?

A. Here's a quote from Dorcas Helfant, president of the National Association of Realtors: "We anticipate the new administration will act quickly to make housing a national priority."

Median price of home rose nationally

Q. What is the national median price of homes? Is it rising or falling?

A. The national median price is $103,500, according to a report from the National Association of Realtors. That's 1.6 percent above the median price one year ago.

It's interesting to note that the largest price increases have beeposted in smaller towns and cities in the West, Midwest and South. For example, Cedar Rapids, Iowa, has experienced an increase of 16.8 percent in their median price of homes.

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