Why is that in almost 90 percent of foreclosed home I see the owners dont even try to sell it. Litterbugs!?

Question

I mean almost every person I talk to says, yeah we let er go back to the bank. Foreclosure usually takes up to 8 or 9 months and most Realtor listings are about 6 months. Instead they choose to put blight on the community. Actually run the interest and PMI rates for the rest of in the future. I have sympathy for unemployed and disabled. No shame in being poor either. But there is shame in not taking responsibiliy and being downright indifferent to how it affects your neighbors.

Answer 1

I think your being a bit harsh on the people who have been foreclosed on. I don't know of anyone who enters into a home purchase with the sole intent of having it taken by the bank later. But let's look at the situation that creates a foreclosure.

Obviously something has changed financially for the home owner. This could have been self-inflicted (over extended credit for example) or a series of misfortunes (job loss, major illness, etc) or it could have been due to deceptive mortgage practices (adjustable rates out of control, fees and other deferred cost, etc.). In all of the cases the simple fact is that the home buyers couldn't pay the mortgage any longer. They then have choice of trying to sell the home or let it go back. Since a majority of the home buyers a entering into mortgages with little or no downpayment (which sounds good at purchase time) this means that they have little or no equity in the home to help pay for the closing cost. Couple that with a decline in the housing market and their lower home value is now less than what is owed on the home so they would have to 'pay' to get out of the mortgage. If they can't afford to pay the mortgage they certainly can't affort to pay to get out of it. Thus.. they are stuck and have to walk away.

Another thing they have to consider is that in order for them to move somewhere else (rental) they have to have a deposit and first months rent and moving cost, etc. If they continue trying to make a mortgage payment or pay their way out of a an 'upside down' mortgage they have no way to move on.

So... don't be so quick to judge. I would imagine that almost all home owners would not want to be evicted and foreclosed on.

Hope this answers the question.

Answer 2

They probably don't know what to do... I dunno. 2pts!