Every day I open the newspaper and see all the foreclosures I wonder why people don't sell the home before the foreclosure takes place. Yes this is a difficult and lean time for homeowners, yes, with cost of living ,inflation, gas prices,heating prices always going up and never down...can someone answer as to why the homeowner doen't sell the property before they ruin their credit?
My guess is that these are some of the reasons why.
a. People have purchased the home at a inflated prices in an inflated market a few years back ,now the market has shifted , resulting in a market correction which causes their property to be less valuable therefore preventing them to sell the house for at lease the purchased value. Knowing that they can't sell for what they owe because of a down market , they let the house go rather than owe thousands of dollars to the bank.
b. People have taken out a adjustable rate mortgages or other creative gimmicks. interest rates have gone up and people can no longer afford the increase mortgage payment because of the higher interest rate, consequently they are unable to afford the home.
c. Many couples have bought the property on two incomes. Maybe one loses a job, wife has a baby, other fiancial obligations. I guess any number of reasons.. Life Happens!
As a Stager and investor I have seen many properties. I would love to come along the homeowner to help stage their property and and sell it, and help them get out of bad situation.
Anyone that has another view , or would like to share their or experience it would be great.
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