In a recent report it was stated that 31% of defaults could be strategic. That means the property owners can probably pay their mortgage but choose foreclosure rather than continue to pay a mortgage that is higher than the market value of the property. The home is not their abode, but simply an investment. People are abandoning properties even though they can still afford to pay.
People sometimes feel remorse but banks gave people who wanted to refinance and continue to pay their mortgage a hard time. Underwrites claimed that because the home would not appraise, the owner would not qualify for a new mortgage. The banks forced their hand.
According to the report, Chris Deaner of Sun City, Ariz., told CBS’s “60 Minutes” he was fed up. Deaner and his wife bought a house in 2006 for $262,000 but the property is worth only $142,000 on today’s market. He asked his bank for help. “They refused to,” he said. “They said it was gonna affect my credit and they were gonna take my house. And I pretty much said, ‘Go for it.’” This was a family willing to work with the banks but the bankers refused.
Until we see more cooperation from the banks we will not see a speed up of the turn around.
Still, it is a buyer’s market and there are many great deals in Charlotte, County, FL, especially for those with cash.
View listings at Our web page. Homes, condos and land for sale in Southwest Florida.