reply to post by Maluhia
I guess it depends on which housing market. We had to abandon our lovely home in the DFW area in January 2011. We were sent foreclosure papers in
April 2011. Fine, take it, we said.
We tried for over a year to sell it, but even at 20% less than what it was worth in 1999, no takers. Everybody wanted to buy it for 1/3 of what it
was worth, and I guess I don't blame them for trying, because a B of A foreclosed home across the street that went for $150,000 in 1999 was sold by
them for $50,000 in 2011.
So we bought a little country house on 5 acres 400 miles away, sent B of A the keys to the old place and said, here you go, take it back.
They never foreclosed on the house last April. They badgered us to death on the phone until we told them that we were recording each and every phone
call, to which they said, "You are not allowed to record these calls". We said, "Why not? You state at the beginning of each call that you are
recording it. Yet you state that we cannot record the exact same conversation?"
Thereafter, the phone calls stopped cold. We still get a bill every month, in which it politely states that we are a mere 15 months late on our
payments, and they sure would like to "help us" make it right again.
We begged them, just take the house. They said we needed to fill out new paperwork. We said, "Um, NO, the original mortgage paperwork should
provide you with sufficient legal rights to foreclose upon this property."
The house is just sitting there. It was in perfect condition when we left it....Don't know how it is now. Not one peep about them foreclosing like
they said they were going to do a year ago.
My point is, I'll bet certain housing markets are "hot" and they are much more likely to foreclose on those properties much quicker. In our case,
DFW is saturated with foreclosed homes. There is also the possibility that they cannot find the original paperwork, hence their push to try and get
us to fill out all new paperwork just so they could foreclose.
We felt bad for having to abandon the house, but we had to leave the area, we tried to sell for a year, poured a lot of money into the house to make
it more sale-able, all for naught.
A relative purchased us a little house and land. It is completely paid for, we have no mortgage, and the banks were cut out of the loop entirely. I
find it highly amusing when I get letters from mortgage lenders stating that they KNOW we have a mortgage on this place we have now, and they'd be
willing to give us a better deal.
I anticipate that, eventually, all the homes will be foreclosed upon, and investors will snatch them up and rent them out. I cannot see the banks
being in the rental business, but then again, who but a few wise sages could have seen the death of the American dream in the form of the middle class
being divested from their only source of true equity?