The consequences
The likelihood of an influx of bank owned (REO) and previously unsold foreclosed homes about to enter the nation’s real estate market in the coming months is all too real.
Although the numbers remain a mystery, one thing is almost a guarantee… this will impact just about every homeowner from Portland, Oregon to Portland, Maine and all points in between. I’m not talking about home values declining further or even talking about the housing market as a whole becoming more unstable.
Nope, what I’m talking about is the collateral damage that will almost certainly occur and the unintended consequences to the good, hard working homeowners who’ve paid their mortgage and have lived up to their promises of being a good neighbor.
A shift in focus?
Clearly the focus to date has been on those who’ve lost their homes over the last few years…but little has been mentioned about what the impact will be on the homeowners in good standing living in these neighborhoods and communities that are baring the brunt of these foreclosures? Lost in the minutia of all this doom and gloom, there are still actual homeowners that have made their payments and still want to see their beloved community maintained. When these homes finally do sell for pennies on the dollar, who do you think will eventually own these properties?
- First time home buyers? With rates and down payment requirements keeping many out of this arena…I’m inclined to think not!
- Investors? Certainly these folks who are buying these homes can only live in one at a time which means they will be renting most of them out. Certainly not an enticing thought or what the current homeowners want to see, I bet!
- Second home buyers? Maybe, but tight lending regs rule out most folks owning 2 homes unless you have a gold-plated credit score.
- Move-up or Move-down buyers? Again, maybe…but these folks likely need to sell before they can buy.
Who do you think will be the players in this foreclosure free-for-all? Certainly leaves a great deal to the imagination…especially if you live in one of these neighborhoods or communities.
