Banks Get Wise?
November 3rd, 2008
Categories:Real Estate News
Believe it or not, it appears the banks are starting to sit up straight and take note of the foreclosure problem.
Studies have shown banks loose between $80,000 and $100,000 per property when they foreclose on a home due to the costs involved with processing the foreclosure and the reduction in sales price. The question home owners and Realtors have been asking is, “why not find a way to keep willing homeowners in their homes and and save all that money?”
The New York Times reported Chase Bank will be holding off on foreclosing on homes for at least 90 days to help homeowners refinance and renegotiate their loans to allow them to stay in their home.
The Arizona Republic has also reported Bank of America is doing the same, and they are urging other banks to hold off on foreclosures as well. Currently Bank of America has held off on foreclosing on 2,000 homes in the Arizona market.
This might be the action the real estate market needs to quickly turn around.
Related posts:
- What Banks Have Loan Workout Programs?
- Current Workout Programs Accepted Most Banks
- Real Estate Market Update
- New Housing Bill
- Time's Quickly Ticking for the $8,000 Home Buyer Tax Credit