Stop Foreclosures - Los Angeles
1 million people walked away and let the banks foreclose. Last year 1 million people made the decision to let the banks foreclose and just walk away.
Homeowners who had the money to pay realized that no business person in their right mind would continue paying on a house that was just a big money pit. If you read the Wall Street Journal that is exactly what big business is doing when walking away from investments. Two of the biggest firms, Morgan Stanley (a global financial company) and Tishman Realty and Construction (builds and sells commercial properties in every category across the U.S.) walked away from properties.
People Reason, "Why Pay?"
Most people are finding that they can rent for less and live in a much nicer house, so they reason, "Why keep paying the mortgage?" They feel that by the time their homes are worth what they currently owe, they will be able to purchase again. Obviously, most of these homeowners don't expect a quick recovery.
More than half of the 11 million mortgage holders are under water and next year it is expected to double. This means that their homes are worth less than their mortgages. More and more, they are shaking off their consciences and just walking away. Their biggest concerns are what their neighbors will think. They feel that the bank doesn't feel shame so why should they.
According to 60 minutes, with all the strategic defaults "the banks are becoming the zoo keeper of white elephants." They don't negotiate the principal so people are walking away. If banks did negotiate, they would be getting a lot more money on each property.
You Will Be Able to Purchase a Home a Lot Sooner with a Short Sale
Those who were able to do a short sale will be able to purchase a home a lot sooner, so check to make sure if you quality. Make sure that the agent that you work with is qualified and certified in short sales and that they know what they are doing.
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