Banks Repossess US homes at a record pace

Compliments of Green Street Realty

Banks Repossess US homes at a record pacePosted on 19 Jul, 2010 by admin If you were running the US Government, and had the choice on how to resuscitate the Real Estate housing economy, how would you do it? Would your answer be 1) to have the lenders repossess homes, that will eventually go back on the market at a slashed price in order to sell them fast, or 2) would you force the lenders to take a reasonable offer at or near current market value, get a new homeowner into the home at a fixed interest rate for 30 years?

An ideal situation would be option number 2, but there are so many investor backed loans that lenders are being forced to gamble by refusing these reasonable offers. The investor will take a hit, no matter the circumstance, but why take more of a hit by seeking the alternative?

We feel, that it’s time for the economy to rebound, but putting houses back on the market at a slashed price, after they’ve been foreclosed on, only continues to drive the value of the rest of the properties in the subdivision much lower than is necessary.

At some point, someone will do the math and understand when the time is right to stop the foreclosure process and start following the rules of the short sale. Take less of a hit now, get the property off the lenders’ books, and move on. At face value, it’s a win-win-win situation for everyone involved. There has to be something much deeper than what is seen at face value. Maybe it’s a bonus on the back end for the investor by taking it to auction. When doe the greater good for the economy outweigh the individual outcome of this foreclosure process?

As the market continues to tumble, we may look to the repossession of these homes by lenders as a reason for the continued struggle.