I own a home in Ocean Isle Beach and today, I showed the property to a couple who had moved from New Jersey to North Carolina a few years ago. They bought a new home in a big box development and then the house in Jersey didn't sell so they rented it. Next, renter moved out and they couldn't re-rent so they allowed it to go to foreclosure.
What did they care? They were already living in their new home. According to them, they tried to re-fi recently and they are just tired of paying on an upside down mortagage that won't appraise anywhere close to what they paid, and of course, the development was tied to the lender. I asked if they had it listed to sell...their eyes dropped but they said they hadn't got around to it yet. After a few more minutes of conversation, (I'm a little slow at times), it dawned on me that they are trying to rent before they walk away from this home...no big deal, they did it before...it's easier this time.
This is couple #21 and I have only found two who didn't have a foreclosure, tax lien, or chapter 7 on their records...so you wonder where these displaced homeowners are going to live. They are smart; they don't go to rental companies; they go to unsuspecting individuals who don't have enough property to belong to an association so it will be hard to see their whole credit history.
For the past two years, I have said, the market is going to improve; it can't last much longer. Sales are going to get better. Now, after working with renters, I think it will be a long time before sales are anywhere close to supporting an agent...too much bad debt.
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