01-02-2010, 02:47 PM
quote:Exactly! I have several friends back in Illinois who got into the same situation.
Originally posted by KathyH
...VERY FEW of the stories on the foreclosure forums involve reset rates. Most are either people who lost their jobs or had medical costs who could no longer afford existing payments...
In addition, Obama's program has made it worse. The banks (mortgage companies) get money to cover most of their loss on a property. A bank used to care about how little the foreclosed property might sell for. Now they don't as they get most of the loss paid back. Have you noticed how many foreclosure sales now list "no upset price"? The banks don't care if it sells for $1. (the judge won't approve a $1 sale, but that's another story) They get paid anyway. This does not help the real estate market.
My prediction - worsening foreclosures in 2010 with a slight bump in real estate sales in Spring due to pent up demand - going flat or lower for the rest of 2010.