I wonder if I’m the only who notice that, not one but several houses on the block are plastered with “for sale” signs downgrading the value of my house and other homes. At one time,my neighborhood was a booming real estate area. I mean,people were buying houses like crazy; but now, the trend has changed. The signs keep going up faster than I can blink, leaving me to ponder why is that house in the neighborhood still in foreclosure.
Home foreclosure is on an up trend and month after month, the whole country experiences an influx of hundreds of thousands of home foreclosures. It’s like an epidemic. These foreclosed houses release havoc on other properties in close proximity or immediate areas as they down grade other property values and provide head aches for other homeowners.
Many of these homes are unkempt. It appears that owners no longer care as sometimes debris and tall grass replace what used to be a front yard. Although for sale signs are installed these
houses in the neighborhood are still in foreclosure. No one appears to be interested in purchasing these houses in the neighborhood which are still in foreclosure
It is not surprising why these houses in the neighborhood are still in foreclosure for a very long time given the time constraint for settlement of any foreclosure. Do you know that it takes three hundred and seventy days with an additional one hundred and eighty days before one can purchase foreclosure property? That’s approximately two years for a home buyer to own that property. That wasn’t the case though for prior years,as during the years 2006 to 2007, it took a typical foreclosure one hundred and fifty days to close. The change in these numbers reveal how bad the housing market really is.
Still, the question lingers.why these houses in the neighborhood are still in foreclosure? One could speculate and blame the banks Given the current state of the housing market,banks do not burden the housing market with more foreclosed properties for fear of another melt down so it could be that banks are dragging their feet when it comes to listing these foreclosed properties.
Even the Experts seem to be in agreement about the banks holding back. Daren Blomquist, vice president of the foreclosure listing website RealtyTrac, states,”banks are slammed by high foreclosure volume and the additional scrutiny resulting from improper foreclosures of the past. Some wondered aloud if banks were concerned about a flood.”
In April, a whopping twenty-five billion dollar foreclosure abuse (robo-signing) settlement was agreed upon by the banks;yet,in the second-quarter, filings rose at a percentage of nine,very much higher than the previous quarter. So,it does appear that banks are very much at ease when it comes with foreclosing.
To date, about five of the most prestigious banking institutions are paying a price for their practices of robo-signing, where employees signed off on foreclosures without closely double checking documentation. It is reported that about ten thousand documents were approved by one bank in just one month.
Still,this is not the only reason why that house in the neighborhood is still in foreclosure. David Le is a real estate agent in Northern Virginia and he says, that in a recent real estate transaction,he had to wait close to a year to get a tenant of a Fannie Mae-owned property to be evicted. As if that wasn’t enough,he had to put up with inspections and appraisals that went on for about three months until the house was finally listed.
Bear in mind, that state rules and regulations do play a major role. They can also be very strict and they vary by state. Take for example transactions with Fannie Mae. They abide by strict rules and regulations. Prices stay in effect and will not change during the first thirty days, still,there are buyers who will purchase distressed properties for the set price; when they could have held out a little longer for the reduction in price which happens after thirty days. You see,Freddie Mac and Fannie Mae are not at all concerned with the way the property looks;They pay more attention to the bottom line and so the chances of negotiating are very slim.
It may appear that there is no rush to get rid of these properties quickly;yet Blomquist observes,”In some areas, foreclosures are selling like hotcakes, Buyers see foreclosures as great deals, and agents want to have more of that to sell. In some of the harder-hit markets, foreclosure inventory has dwindled down to a smaller amount, and the demand is there from the buyers.”
So, its not so dismal as it appears to be. Home sales will experience a major boom in the not so distant future. In the early days of 2012,pre-foreclosure sales was up by twenty-five percent, a positive sign that explains how banks are handling distressed properties. Banks entertain the idea of pre-foreclosures as they decrease loss.
Pre-foreclosure provides the opportunity for buyers to purchase a home through short sale or auction prior to completion of the foreclosure process. As noted by RealtyTrac.com,earlier this year, pre-foreclosure home pricing was increased by twenty-seven thousand dollars more than the price of a foreclosure sale.
Although the housing market might take years to gain momentum, neighborhoods,those signs will eventually disappear and why is that house in the neighborhood still in foreclosure will no longer be on a bother.
So don’t be alarmed and lost sleep over,why is thathouse in the neighborhood still in foreclosure as there is something that you and your block Association can do if the foreclosures in your neighborhood are devaluing your properties. First, start by keeping properties in question free of tall grass and garbage. Stay in tuned with the market,have an appraisal done on your property, and keep the lines of communication with real estate agents open; and,please! stop worrying about why is that house in the neighborhood still in foreclosure.