Banks Don’t Want Empty Houses
With the increase in foreclosures, banks have their hands full. Once the foreclosure process has begun, the bank starts to lose even more money. Then the bank acquires an empty and sometimes vanadalized house. A vacant house can sit for months while the bank gets everything together to begin the selling process. While the home sit vacant, it can be vandalized further. The plumbing, fixtures, wire, toilets, etc. can all be removed from the home. This leaves the bank with an even bigger burden.
So, some banks have not forced people from their homes even after they’ve gone deliquent. According to “Lenders Swamped by Foreclosures Let Homeowners Stay” on Bloomberg.com, banks are allowing the homeowners to stay in the home typically if they are in hard hit areas or areas known for vandalizing. However, the down side is it’s not giving a clear picture of how bad the foreclosure crisis may be.
Well said.
October 22nd, 2008 | #