Strategic defaults are among the major factors driving bank foreclosed homes in Fresno.
Local realtors said that many homeowners are giving up on their underwater mortgages particularly if their loan modification applications are not approved. They said that residential properties have sharply fallen to price levels where buying has become a much better option than renting.
Strategic Defaults Driving Bank Foreclosed Homes in Fresno
A Fresno homeowner making a monthly home loan payment of $3,600 will certainly question the wisdom of continuing to make his mortgage payments if his neighbor is renting a comparable house for only $1,200 every month. Another borrower with a mortgage worth $400,000 will similarly entertain thoughts of walking away if surrounding comparable homes are being sold for only $150,000.
In the San Joaquin Valley, where Fresno is located, realtors and nonprofit counselors are seeing more and more homeowners giving up on their homes. They said that borrowers have figured they cannot survive if home prices will begin to increase only after ten years.
Based on studies by real estate analysts, about 33 percent of bank foreclosed homes nationwide resulted from strategic defaults. They observed that foreclosure no longer carries the stigma associated to it in years past.
In the first quarter, the number of units that became real estate foreclosed homes in Fresno increased by almost 29 percent over the year to a total of 1,312, the fourth highest in the Central Valley and 11.5 percent of the 11,399 foreclosures completed in the valley.
People engaged in Fresno foreclosure investing have more properties to explore as newly-foreclosed homes are further additions to the already huge inventory of foreclosures in the area. On one major real estate website, there are 12,525 foreclosed houses for sale with prices for all types averaging $157,602.
They can also explore foreclosed homes for sale in California, as the number of pre foreclosures increased in May to more than 56,000 and the number of bank foreclosed homes jumped up to almost 16,000 units.
Author Resource:-> Original Post: Strategic Defaults Driving Bank Foreclosed Homes in Fresno on ForeclosureDeals.com.
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