Living After Foreclosure

This article by Liz Pulliam Weston, entitled Foreclosure Nearby?  It’s your problem, brings up the “friendly fire” aspect of foreclosures:  a foreclosure nearby hurts everyone in the neighborhood, not just the personl foreclosed on.

A neighbor who’s in financial trouble probably is worried about their house, but it’s almost certain that they’re not worried about the value of your house going down.  The value of your house will go down in the event of a foreclosure though.

On first reading Weston’s article I laughed at her suggestions, but she’s absolutely right.  No one will care about your finances as much as you will. If this means sticking your nose in their business a little bit, then that’s what has to be done for both your good and their’s.  Here’s what she suggests:

• Suggest that they get help. If they’re in denial about the foreclosure, then this is crucial.  Nothing good happens until one gets past this point.
• Enlist your HOA to use the power of numbers as leverage.
• Be aware of who’s moving in or out and especially be aware of signs that the property is becoming abandoned.
• Trespass to mow the lawn?! I think this one’s going a bit far.  If there’s a way to get the owner’s permission to do this, though, that might help.
• Push for legislation to allow judges to lower the amount owed on houses?! This is a can of worms, and opens the door for other abuses.  Lenders can already lower the amount owed on their own accord if they want to, but forcing them to take less for the property through a judgment is the start of a slippery slope.

One I’d add: See if you can buy the property! This isn’t for everyone, but managing a property next door does have its advantages.  Plus, it’s a neighborhood you know well and would like to keep attractive.

• "And on your right we have this beautiful three-bedroom..." Banks are hurting as foreclosures turn into non-performing and expensive real estate owned. Homeowners are hurting because they're losing equity, or losing their homes and their credit rating. Neighbors are hurting because their property values are getting dinged, even though they're paying their mortgage on time. Cities are hurting because......
• Big jump in foreclosures: Who's immune? Probably not too many people.  Though California, Arizona, Nevada, and Florida are still the poster children for the housing carnage, Idaho, Illinois, and Oregon are up-and-comers.  Foreclosures for February 2009 are up 30% from February 2008 levels.  Seven hundred thousand properties owned by banks haven't been put on the market......
• Recognizing the signs of a family facing foreclosure Free Money Finance recently had an acquaintance of his go into foreclosure, and the signs of trouble were clear in retrospect. People don't advertise that they're facing foreclosure, at least not outwardly.  Even if money is getting really tight, people can compartmentalize the worry when they're interacting with others.  One......
• HUD tips for avoiding foreclosure: Part 3 The US Department of Housing and Urban Development has some good advice for people that are in danger of losing their home through foreclosure. Here are the last three tips from that list, with some discussion. Use your assets. "Do you have assets-a second car, jewelry, a whole life insurance......

• Sometimes You Have To Ask So I was watching this show The Millionaire Inside on CNBC and the episode featured Donald Trump talking about real estate investments. One of the audience members asked Trump if he thought it was a good time to buy real estate since there were so many foreclosures. Trump's response was......
• Real Estate Investments - Good Idea or Bad Idea? Right now, if there was a market that had bad news written all over it, it would be real estate. The housing crisis has made investors jumpy, the economy appears to be tanking and home values are plummeting across the country. Would you believe that this is actually a good......
• Sarasota Realtor Helps Investors & Families Avoid Foreclosure! Sarasota Realtor Mike Payne personally knows foreclosure and the confusion, anxiety, anger & fear associated with foreclosure. "Helping people avoid foreclosure is caring about the people behind this nightmare," Payne adds. The housing market fell off the cliff in the middle of 2006. I too was left holding investment properties......
• Housing Downturn? Not For This House Once a month, I make it a habit to pick up a copy of Homes and Land. I'm not looking to buy a home in Northern California, but I like to stay informed about the local real estate market. The homes in this area are among some the most expensive......