Nationally, the media is reporting a 25% increase in foreclosures over 2007. The Tiered Real Estate headquarters is in Illinois where foreclosures jumped 31%. Part of the reason the national rate had “only” a 25% increase was due to some states restricting the foreclosure of some properties which artificially surpressed what could have been an even larger number. It was reported that by years’ end, there could be a record 1,000,000 foreclosed properties for sale in the United States.
Why is this rate increasing so dramatically if the bail out was supposed to help? There is much speculation to the reasons. Much of the information from the banks themselves is confusing. We have worked with many buyers and sellers who are trying to avoid foreclosure and while some banks are eager to work with homeowners, there are just as many who refuse. Are they trying to foreclose? Do they want to take the properties before the governement tells them that they cannot foreclose and so they lose money from non-payment as well as not being able to foreclose? Are they so mismanaged and filled with beauracracy that they don’t even realize when they shoot themselves in the foot? No one can tell.
What we do know is that the baseline hasn’t changed. Banks are not in the business of possessing homes or being landlords. They are in the business of taking in and giving out money for a profit, and ultimately, that is what they want to do.
If you are struggling, please talk to your bank to see if they will work with you. If not, call one of the experts at Tiered Real Estate so we can help you sell your home and save some of your credit in the process.