Homes are still selling to some extent here in New York however people who bought homes at the peak in the market are the ones that are now having the biggest problems...They simply can't get the price they paid for the home should they need to move... Many people are walking away from the homes because they can't keep up with payments and see that it will be years if ever that the home will be worth what they paid for it. Foreclosure is foreclosure if the people walk away in the dead of night or the sheriff comes and heaves everything in the house out on the curb... On paper the property will be recorded as foreclosed.
Fox News was reporting an interesting trend that's taking shape in the housing market... Some people who are underwater in their home loans but still have credit are buying cheaper priced homes in the same neighborhood and walk away from the home that's financially underwater... The sad feature in all this is that people who bought homes they could afford and paid them off over the years are now seeing their investment devalued by sloppy bank procedures and greedy people who bit off more then they could chew...
Banks have now gone completely in the other direction and refuse to loan a penny unless the home is in tip top condition... Someone I know was telling me about the inspection procedure he had to go through for the same bank holding his loan to refinance a five year old house...The loan inspector came in and looked through every nook and cranny in the home and took no less then 200 pictures... This on a structure they hold a loan on already...
Sadly foreclosure is the only path out of this mess... The more government tries to fix the problem by tossing money at it the worse the situation will become... People need to take their lumps and allow the system to correct itself.
Topic: Foreclosures on paper (Read 1079 times)