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During the 2008 recession, the mortgage holders who benefited from the low-cost home loans at the epitome of the housing market were forced to walk away from their Massachusetts homes. When the foreclosure crisis escalated, thousands of American homeowners lost their lifetime savings, and the Massachusetts residents were no exception. The devastating impact of the foreclosures took its toll on thousands of neighborhoods in the U.S, and unfortunately, Boston was one of the worst hit. Fortunately, as the crisis escalated, so did the hope. The constant drop in home prices was a blessing in disguise. The drop attracted a vast array of capitalists who were looking to tap into the market by buying the homes on a shoestring budget.

The South Dakota housing market

The South Dakota housing market has seen plenty of successes and pitfalls in equal measure. South Dakota has been a beneficiary of the oil boom in the neighboring state of North Dakota. While some parts of the state have maintained high home prices and record home sales, other have painted a less glamorous picture when it comes to real estate transactions. Fortunately, the housing market is not as dire as it seems, and there are plenty of reasons for optimism. While the prices of real estate are relatively low, investors are looking at the vast array of opportunities that are worth exploring.

The Keys Cities of South Dakota

Brookings is one of the most populated cities in South Dakota with a population of 22,150 residents. With the low crime rates and high employment rates, Brookings gives the entire state some hope in the quest towards economic recovery. Since the mortgage rates are falling below the 3.5% threshold, the key cities in South Dakota will make a huge impact on the road towards recovery. These cities include Aberdeen, Pierre, Watertown, Huron, and Sioux Falls. With the real investors arriving in hordes, these cities have shown that there is light at the end of the South Dakota’s tunnel.

South Dakota mortgage laws

South Dakota is taking the necessary steps to eliminate the prospect of predatory lending. Recently, South Dakota has made significant progress in availing capital to the borrowers that have a poor credit rating. Despite this endeavor, however, several families are feeling the pinch as a result of the lenders that have continued to abuse the lending practices, especially in the mortgage market. The State of South Dakota understands that predatory lending practices can strip various borrowers of their home equity while threatening their families with foreclosures. In retrospect, these practices have destabilized the very communities that have begun to enjoy the vast array of fruits of the state’s economic progress.

Hard-money lending has become increasingly popular in South Dakota. Due to the vast array of opportunities in the real estate sector, most of these lenders are specializing in the lucrative mortgage industry. Today, the real estate investors are looking for innovative ways to take advantage of the available opportunities. As such, the need to access the liquid capital is becoming a priority, now more than ever. In addition, every borrower seems to have a special interest rate for the loans. Since the buyers are looking to close deals fast, many flippers do not seem to care. While this funding method can suit the flippers who are looking for short-term gains, it might spell disaster for the prospective homeowners who are in it for the long-term. In the quest to avert another economic downturn, the state of South Dakota is looking to enforce the following mortgage laws:

  • A lender is required to disclose all aspects of the loan. The key details include the repayment period, interest rates, and the total payable amount.
  • Once the deal is signed, the mortgage provider is prohibited from including some hidden charges in the quest to fleece the borrowers.
  • In case a lender struggles with the repayment process, especially after losing a source of income, the lender is obliged to offer a flexible payment option to the borrower.

Since the flippers invest on the short term, most of the people who had lost their homes could now afford to downsize and provide affordable shelter to their families. Evidently, there are plenty of investment opportunities in the rural and urban regions of South Dakota.