Who is really paying for foreclosures?
With the way that the laws are currently written for real estate, I propose this thought for people to digest.
The only person who is truly hurt by a foreclosed property is the neighbor.
I don't want to sound mean or insensitive to the home owner who has just been thrown out of their homestead, but I don't think they have it the worst. With the current laws, the only damage to a person who has had a foreclosure in their past is a lower FICO score (credit score that can be cured in a very short period of time) and a little bit of public embarrassment. That's it.
As for the bank's losses, they have insurance to cover them to a certain extent in most foreclosure situations. Oops, I just found another person affected by foreclosures. The insurance companies that cover the bank's losses.
What we are left with is the neighbors who are faced with a depressed home in their neighborhood bringing down the local values. Most of these homes are stripped of anything of value (appliances, A/C, sometimes plumbing fixtures, lights, etc.) and left in a condition that only a mother could love. I've walked into properties that are available because of foreclosure and been amazed at how filthy a home can become in just a year or so. Brand new homes that appear to have 30 years worth of wear and tear.
Something to think about, what are your thoughts on this topic?
Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty St Cloud
www.StCloudEdina.com - Home of the e-Market Analysis (Free Home Value Estimator)
