Home Buying in 29456>Question Details

Frank, Home Buyer in Bronx, NY

There are a huge amount of homes in foreclosure. Is there a core reason why? I would like to avoid being a part of that group. Thanks.

Asked by Frank, Bronx, NY Thu May 30, 2013

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The best way to avoid this is to speak with a local lender.
3 votes Thank Flag Link Thu May 30, 2013
I feel the current huge amounts of foreclosures are due to several factors, and I know what I write now won't cover them all, but for starters no oversight by the federal government on some issues, uncontrolled lending practices, the over leveraging of the opportunity for making money in rising real estate prices. Some (NOT ALL) lenders, loan officers, realtors, appraisers, escrow companies, and title companies attempting to make huge amounts of money underwriting and selling risky loan products,with total disregard to ethics and, in many cases, the law, and borrowers accepting them. People receiving adjustable rate mortgages, just low enough for them to make the payments thinking they would get raises or better employment opportunities in the future, and not only in a lot of cases, did that not happen but because of the depressed economy a lot of people actually got laid off but still had mortgages to pay.
2 votes Thank Flag Link Fri May 31, 2013
Not a problem I hope it helped
Flag Tue Jun 4, 2013
Mr. Drumming. Thanks for your intelligent reply. You replied with a lot of logic.
Flag Fri May 31, 2013
Yes, there are a tremendous number of home is some stage of Foreclosure:
Some people call this the "Shadow Inventory"; time will tell if I am right.

You say that you want to avoid being part of the group; are you saying you are in danger of falling behind? Just communicate with your Lender.
Or, are you saying you don't want to just in the middle of the fracas; then don't!
0 votes Thank Flag Link Thu May 30, 2013
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