Many areas are feeling it, the influx of foreclosures inundating our market. In the beginning, buyers were rushing to these proposed "great deals". Then, the foreclosure avalanche squashed most buyers in the streets. Aside from the foreclosure inventory flood, we are also experiencing a simultaneous foreclosure problem. Often, the former homeowners are seeking some sort of unjust revenge on the very lender who is forcing them out of the home they could not pay for.

Property owners and tenants are essentially gutting the inside of these homes prior to leaving. In fact, others are assisting in this act by visiting the owners of the foreclosing home and offering them cash for their appliances or other removable items. Knowing the owner is facing a financial crisis; they prey upon the vulnerability and offer financial assistance in exchange for their contractually "attached" household items. Some homeowners are going as far as removing the copper plumbing from within the walls, to sell it. Anything they can remove and sell, to somehow recoup "their" loss is now leaving a sea of homes with a larger "fixer" issue to any prospective buyer. To make matters worse, many of the former owners or occupants are intentionally destroying the home as they leave. I have personally witnessed bullet holes though out the walls, burns to the carpet, holes kicked in walls; even the toilets are missing. Entire A/C units are missing, pool heaters and equipment, and the list is endless. This is making it impossible to utilize some loan programs when selling, which eliminates many of the very few buyers currently available.

Because there are so many homes already on the market, buyers have plenty of selection. The problem is the buyers are witnessing the sea of destruction created by the former owners, and retreating. Brave buyers will attempt extremely low offers, knowing the extensive repair list they will inherit. Some banks will accept the low offer only to rid their books of the high inventory. But doing so, they are adding to the dilemma for the remaining listings. When one or two homes sale for extremely low amounts, this is driving the prices down for the other homes. Motivated sellers (who are not in default) are faced with the decision of reducing their perfectly fine home to ridiculously low numbers, only to compete with the desperation of the defaulted banks.

So who is at fault for this real estate traffic jam? Seems that there are many contributing factors. Is it the real estate agent that showed a home to a buyer they knew full well could not afford it? Is it the lender who granted a seemingly good loan with a comfortable payment, knowing that payment would inflate beyond the buyers' financial capacity? Are these homeowners at fault for selling off what they can before leaving the investment that everyone told them they could afford? How about the individuals who knock on doors encouraging the owner to sell the appliances for money, only to turn a profit on resale? Is this now the banks doing, for taking substantial loss on property only to rid their inventory and search for air upon their sinking ship? Perhaps it is the perspective buyer who is taking advantage of the volatile situation by making extremely low offers on these properties. A vicious circle with no end in sight.

Seems everyone has a hand in the cookie jar at one point or another, so is there truly one finger to point blame at? Is there anything anyone can do at this point or has the damage been done irreversibly? Is the damage completely done? It will be interesting to discover exactly how this real estate traffic jam will be corrected.

If you would like more specific information on the St George Utah real estate market, visit my website where you can find current market condition news and reports specific to this area.  www.StGeorgeUTproperty.com