According to a story on CNN.com (http://money.cnn.com/2009/01/08/real_es ... /index.htm) you can pick up foreclosed homes in a few US cities hit hard by the recession for as little as $500 to $3000. They show photos of one 3 bedroom house that is being sold for $500. They do mention it needs $15,000-$20,000 of repair to the interior, but the person who foreclose don it purchased it in 2007 for $72,000. So, in a little over a year this person bought this home for $72,000... paid the mortgage for a year, probably only down to $67,000 or $68,000... the bank foreclosed the home and is now selling it for $500. The bank claims it is selling the house this cheaply to avoid having to pay any property tax on it... but is $500 really that important to the bank? Could they not have just let the poor person keep the house, or offer to let him buy it outright for the $500... even $1000? If they know they are going to take a huge loss on it why not help someone out? Hell if I were in the situation of these home owners I would purposely allow the bank to foreclose on my home, file bankruptcy and turn and buy it back from them in cash. For an industry that received such a massive windfall bailout, they seem to be acting like complete assholes to anyone else that is in rough financial times. The banks did not have my support in getting the bailout, but committing acts like these is making me wonder if I will ever actually use a bank again. Just disgusting.
I'm also getting sick of the commercial's that advertise these companies that have listings for foreclosed homes. While I LOVE a bargain, I do not want to profit from someone else's misfortune. And I think these commercials are sending a message that it is OK to kick people while they are down.
Know what is even sader... I googled "foreclosed homes" to see how serious this article was, and over on the right under the sponsored ads, the #1 ad was from ebay doing live auctions on foreclosed homes. I mean a fly by night non reputable company trying to make some money off the misfortunate is bad enough, but ebay trying to get in on it??
I just think it is really sad. My husband has been out of work on and off for nearly a year. His unemployment will run out soon and we will have think about selling off some things. I certainly don't make enough to cover the bills and the mortgage too. He has had this house for nearly 30 years but had to take out a new loan when he and his last wife divorced, in order to pay her off.