This article in the Star today on foreclosures spurred some thoughts…
We’ve got a problem with foreclosures. There are alot of them. The lenders are to blame for originating so many risky loans out there, but the regulations of last month and the closing of all the sub-prime lending companies should put an end to the crazy lending for a while. But I also feel that the buyers should take some responsibility for their predicament. Just because someone will give you a loan, doesn’t mean you should just take it and ask no questions. Ultimately, these people are out of a house and have wrecked their credit (again presumably), because they didn’t educate themselves on the terms of their loan.
Now, we have a huge inventory of homes for sale out there, and nobody to buy them which is unfortunate because it is a great time to be a buyer. Rates are still low (though I think, hear and read that they will probably be heading up), and it’s a buyer’s market. But the people that are current homeowners that want to sell and buy something different are waiting because they are scared they won’t be able to sell their house because of the slow market. And people with credit issues can’t get loans. And now investors are also having a harding time getting loans because of the lending regulations related to the foreclosure/sub-prime mess. And there are probably alot of other people out there that want to buy a home, but are scared because of all the negative press real estate has been getting lately.
As a realtor, I hate foreclosures. I can say this with some authority because I have seen alot in our area, have purchased one myself, and have assisted several buyers in the purchase of a foreclosure. My reason for disliking them is twofold. The process is complicated, one-sided (the bank’s side) and unfair. My other reason is that the houses are usually in a state of disrepair. Think about it. If these people can’t afford their mortgage, do they have money to fix and maintain the property? Not usually. And you can’t find out a thing about the history of these houses because the seller is a bank who is staying as far away from the home as possible. They don’t want to know, because if they know then they assume some responsibility.
So, now that I’ve gotten that off my chest, give me a call if you want to buy a foreclosure 🙂