We always encouraged potential borrowers to get off the sidelines (if their financial situation allowed for it) and take advantage of what the housing market has to offer. Yet, it’s certainly not too late — rates are at historic lows, there’s a tax credit for ALL homebuyers, and real estate prices are cheap.

You can’t blame banks for wanting to get the most out of their investments…I would assume you would want to do the same for your own.

Thanks for commenting,
Tim

The banks will only start letting these go as they are required to by rising rates. Right now, why sell to recoup at a loss when you can borrow for free?

We should be lucky in a sense that some are holding onto these properties. At first I couldn’t understand why, but then after a couple of discussions with co-workers it came to me that unloading foreclosed properties will only serve to drop home values even more. Foreclosed properties bring down the value of the home around them. Sure, some bargains may not be available, but it’s also helping existing homeowners by keeping their values from falling even lower.

However, banks do want to recoup their funds asap buy reselling these properties. However, if a qualified buyer can’t be found, or an offer is far below the home’s value, even in its foreclosed state, a bank may not bite.

Just some thoughts for consideration. Thanks for all the comments this weekend, they’re much appreciated.

Always a pleasure,
Tim

They’re hoping that the real estate market will go back up sooner than later, and that will make the homes more valuable, which means they’ll be able to recoup their money faster. If they put those homes on the market now, people will get great bargains, but the banks won’t be able to recoup their money as fast as they lost it since those bad floating real estate loans just aren’t coming back.

I hate those weasels; yeah, I know, I’m not supposed to hate.