Originally posted by genius/idoit
I am in construction in Illinois and don't understand how these foreclosures are not on the market .Is it because the banks got the bailouts and now
they don't have to liquidate the properties?Also I am 44 years old been in the trades for 23 years and everyone I know that has a job related to
construction is out of work most get unemployment and have for 13-20 months.My question is wouldn't it have been better to not give the banks money
let the houses in foreclosure go to market ,be bought, repaired, sold, have the tradesmen keep working and getting paid rather than giving them free
money for 2+years..........thank you Obama!
From what I hear, the banks are now holding on to the foreclosures and not selling them, even if they have offers on them, so the home prices don't
keep going down.
I have a friend who has had multiple offers on her house in Chicago, and the bank refuses to acknowledge any of them.
Also, here in Arizona, the houses are basically just sitting empty. The banks thought that by doing that, it would keep the housing prices up, but
what it's actually done is cause a lot of looting. TONS of houses here in the Phoenix area have been looted for their granite counter tops, their
copper wiring....basically, anything removeable and worth any value.
And of course, on top of it, the banks are refusing to modify anybody's loans. The banks are either saying: You make too much money, or you don't
make enough money. My realtor has told me that so far, she has not seen one person who has been able to get a loan modification yet. She said, they
try for months and months and months, then eventaully go to her to put it up for short sale. So, all the money that went to the banks to encourage
them to do loan modifications, just stayed in the banks.
And, now the banks not only got bailed out, but they also have houses they're holding onto, that they will let go on the market in tiny allotments in
the future, so to keep the housing prices up.
But yes, you're right.....this means people like yourself have no work. You guys could at least be used to fix up the houses.
So, here is my question:
The banks have the houses and the bad loans. We know what happens to the loan papers when they go bankrupt....their loans get awarded to another bank.
(i.e. my home loan from countrywide got awarded to bank of America when Countrywide went bankrupt.)
But, let's say a bank foreclosed on 100 homes, and are keeping them vacant until the market rebounds. Let's say, tomorrow, THAT bank goes belly up.
What happens to all the empty houses? Do those assets (??) get awarded to another bank, too??
I think that's why we're seeing so many vacant houses with questionable ownership now. NObody really knows who owns the houses anymore.
Also, here is something else I recently read about on the internet: Some banks are starting foreclosure.....but then walking away from the foreclosure
process themselves, after it has been started. (Because it costs the banks money to foreclose, and they don't want to spend the money on the lawyers
and the courts). So, some banks are walking away from the foreclosure process. So....these people have been told to vacate their home, and then later
on, they get a tax bill from the city/state because the bank never officially took ownership of the house, because the bank walked away from the
That's why people are being told to stay in the house until they get actual eviction papers, because the home might never go through
foreclosure....then it sits vacant...then it goes into terrible disrepair....then the city comes after the original owner for money, etc...
The city should go after the bank, not the previous home-owner... but nobody knows what banks really own the homes!
[edit on 8-10-2009 by nikiano]