What really caused the market to crash? When we look back we can see some actions that combined made the market volitile.
Foreclosures related to fraud caused the first domino to fall.
The first wave of foreclosures was fraud for profit. No payments were ever made on these properties and they were destined for foreclosure before the ink on the loan docs was dry. Most involved inflated appraisals and 100% financing. These were fraudulent buyers just out to scam the industry. They knew what they were doing when the applied for the loan. Not having to supply any documentation proving income and not having to come out of pocket any money, made it a perfect crime!
Loss of equity and job losses are driving current and recent foreclosures.
Now that the fraud is done and gone, it should be over, right? Well, the real estate market is intertwined with many jobs: title company, lenders, contractor, handy man repairs, roofers, Home inspectors, pest inspectors and more. When real estate sotppped then the job started to decline. Right now two circumstances are driving current foreclosures, unemployment and negative equity. Despite the push to refinance, it is obvious that that is no solution to the foreclosure crisis if the real problem is that people are upside down. And, with servicing companies refusing to modify lucrative delinquent loans and it isn’t even clear if they can, they become a major force in inhibiting the recovery in some communities. The annoying part is that these companies have already received bail-out funds to compensate for the workout.
In my opinion the news media has done a job on the American people. If your listening to them you are deceived. I have to many customer that repeat what the news says and they do not stop to think of the consequences. An example: A deed in lieu of foreclosure is the same thing as a foreclosure. Ask me to email you the consequences for short sale vs foreclosure.
I am here to help you with any real estate questions. Call Rhonda 352-266-2637.
You can search for homes at www.BucknerHomes.com