The number of properties that are going through foreclosure in St. Paul continues to rise. Last November I found 113 of them in St. Paul, on the list I pulled today I found 155 bank owned properties or about 8.3% of the current inventory of for sale single family homes.
I have toured bank owned homes with my buyers and I see evidence of the distress the families that lived in the homes went through.
I get phone calls, from people who have already lost their homes but have not moved out yet. By the time they call me it is too late for them to take action to save their homes. They sometimes still believe they can refinance, not understanding that a recent foreclosure makes it impossible to get a home loan.
The credit card companies, and lenders constantly market to us and make it look like anyone can borrow their way out of any problem. It all looks so easy, but it isn’t. Loans do have to be paid back, with interest, which costs money.
Also see: The foreclosure process , Are foreclosed properties a bargain?, and avoiding foreclosure. Also see Twin cities had the 10th highest rate of mortgage fraud by Alex Stenback
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When I first started in the business, it quickly became apparent that buying a home for fixing up was buying a home in which life had become overwhelming for its previous owner. There is always a story that could be told.
Gads, I hope the bathtub wasnt full when you did this.
Lar, The bathtub in the living room was full.
The one thing I’ve never really understood about this mortgage / default debacle is how do lenders and credit card companies end up making money off of this? Do borrowers pay off mostly interest for the first few years, then default and the bank seizes the entire value of the home?
–Steve
Yes the way interest is fron loaded initial payments are mostly interest. Banks are not making money off of disclosures. I suspect that credit card companies fare a little better.
A lot better