How did this happen? Possibly the renewal of the federal $8000 tax cut caused some home buyers to pause.
Rightard Whitey, our political editor, has been helping one of his sons purchase a home. He discovered that purchasing a short sale is difficult and takes months. Many relators won't even show short sales.
A short sales allows a home owner to sell property for less than the loan amount with bank permission. Instead of a 7 year credit black mark, the home owner only takes a three year hit on their credit with a short sale.
Foreclosures have similar problems. Rightard Whiteys' son made three offers on a home to a bank on one foreclosed property. The bank rejected all three offers claiming it had cash offers. The property is still on the market.
In addition, many of the banks are expecting the market to recover and hope to make higher profits once the economy improves. One relator said that the Bank of America removed millions of dollars of foreclosed property off of its books before the end of the year to make profitability look better.
It appears that banks are sitting on property. The federal government may need to put pressure on the banks to start selling this abandoned property. In Florida it is hard to buy a home because of the banks are not motivated to sell homes they own and even less motivated to provide home loans.
Subscribe to the Rightardia feed: feeds.feedburner.com/blogspot/IGiu
Netcraft rank: 4347 http://toolbar.netcraft.com/site_report?url=http://rightardia.blogspot.com
No comments:
Post a Comment