Obviously one of the big costs to the banks of going through a foreclosure process is being stuck maintaining the foreclosed property after the owners have left. This is not a simple business to be in and it’s one where banks handle things staggeringly poorly.
Foreclosure is not the bank’s first choice is actually yours, they don’t want your home, and there are actually reasons that they want to help you keep it, one of the main ones being the fact that it is very expensive to maintain a foreclosure home.
While you took out a loan so you could buy a house for yourself and your family, your lender gave you a mortgage loan to make money for themselves and their shareholders. When you stop paying your mortgage, things aren’t working out as planned for either of you
We’ve all seen them – bare hulks of houses slowly (or quickly) growing more and more decrepit as the months go by. It’s hard to watch once prosperous neighborhoods be brought down by the few cases of abandoned properties.
Some areas are trying to get tougher on neighborhood vandalism which makes the natural decay happen way faster. They think that stepping up a police presense should stave off the effects of foreclosure long enough for the property to get picked up by an investor.
But this line of reasoning doesn’t really go very far. It’s not the obvious signs of abandonment – the broken windows, the gang symbols, the overgrown garden – that brings down property values and changes the character of neighborhoods.
It’s the people.
It’s the empty windows, not the broken ones. It’s the missing gardener, not the weeds. If we’re going to feel like neighborhoods are emptying out then it’s true and fair that property values should go down. But if we do more to bring people back, to breathe life back into down-and-out communities, then we all stand to see huge benefits.
Join me in this great adventure.