Unemployment and the sudden loss of sources of financial
resources are two of the most common factors why owners of San
Diego condos, or any other condos for that matter, to go into default
when it comes to their mortgages. Likewise, there are factors that contribute
in such default, like falling condominium prices, great possibility of becoming
underwater for years, as well as ill-meaning advice from influencers. These
encourage owners of San Diego condos
to stop making payments. However, such as move have significant detrimental
consequences in the condominium markets.
Lately, significant social media coverage of the
financial crisis that is happening today has made condominium homeowners become
more aware of the equity status in their condominium properties. While the
merits of defaulting as a choice is still being vigorously debated upon in the
industry, what cannot be discounted is the fact that strategic defaulting has
been brought to the attention of owners of
San Diego condos
like never before. However, it must be said that such move have extremely
bad effects to condo markets.
Research studies have shown the most common factor
of any mortgage default: which is the borrower’s inability to continue making
payments. However, what is more difficult to detect is a strategic default: in
which borrowers have the ability to make payments, but simply discontinue doing
it in the hopes of obtaining a financial gain. These behaviors arise after owners
of San Diego condos are influenced by information
they gathered from social network websites.
Condominium experts nowadays share their opinion
with a substantial audience on a regular basis via the social media. Such
social networks present huge potential for faster information dissemination
today than before. These online entities have great impact on the mortgage
markets via the utilization of behavioral advocacy. In condominium markets,
advice by so-called experts can actually result in an immense number of
strategic defaults cases. This can cause a downward spiral of prices of San Diego condos.
Whether by own choice or current necessity, an
increase in the number of foreclosures has a negative impact on the standard
price of healthy San Diego condos.
Normally, one or two default has little negative impact the overall prices of
condominiums. However, as more mortgages go into default, the detrimental
impact can be felt at an alarming rate. Such scenario of increase in default is
now possible with the imposing influence of social media.
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