Foreclosure1 Blog

Investors as well as house hunters are shying away from buying foreclosed houses. In Nassau and Suffolk the foreclosure numbers have risen by 27.4% and 14.4% respectively. But the number of houses has not buoyed up the real estate market. Investors are playing a wait and watch game. The situation is so grim that during the last 6 weeks there have been two instances of prospective buyers walking out with their down payments. This is the first such incident during the last 22 years! Falling prices are making them move away to other pastures where prices are even more less with better amenities.

The figures are wavering. Quarterly, foreclosure numbers rose in Long Island but in Nassau during September there was a decrease from August. In Suffolk it went up by 60%. Across the country the default foreclosures as a whole, taking into consideration all three steps from default notices, went down 8%. But it still remains 99% higher than what it was in 2006.

In such an unpredictable market the buyers are biding time as nothing can be said beforehand. The general trend is for property rates to go down fast. In a stable market or in a market that swings upward the experts know the value by calculating it with the time period they hold on it and the repairs that are required. In such cases some sort of profit figure can be reached. But right now nothing can be said for sure. Even the rate of decline cannot be predicted. It frustrates any business decision and puts a total stop to investment plans.

The picture is grim for banks and other lenders who having toiled through the arduous time and money consuming process of foreclosure to find that at the end of the road there is no firm ground. Repair and other incidental costs keep rising while they hang around for buyers who never turn up.

Mortgage brokers, like Mike Carroll, show that his foreclosure listings keep rising. Since 1993 nobody has seen such a situation. Carroll works as auctioneer on foreclosed houses and has been selling properties for the last 20 years. The recent spate of REO or real estate owned foreclosed units has change the total complexion of the landscape in just two years. Pressure of work has made her install a new computer programme and hire more assistants.

Via

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