Lenders Stuck with Thousands of Properties
We posted recently about why mortgage lenders are generally amenable to working out a home loan modification solution for those borrowers who qualify, and the reason that this is the case is because of the expense and eventual loss that these lenders incur during the repossession/foreclosure process. Now comes word that lenders in the Tucson area are concerned about what to do with a plethora of properties that have basically been abandoned.
According to Inside Tucson Business:
““What we are seeing is people give up hope as they try doing a loan modification,” said Long Realty Senior Associate Broker Rebecca Patsch. “They’ll leave their house and then the lender will file for a trustee sale, which typically the trustee sale will happen 90 days after the filing. But what we’re seeing is lenders are not completing the foreclosure for six months to a year after the filing. So that’s why a lot of these houses are just sitting there with no one in them and they’re not listed for sale; the lender hasn’t foreclosed.
Tucson ranks among top metro areas for foreclosures, according to a report released July 29 by RealtyTrac. For the first half of 2009, Tucson ranks 40th, with more than 7,000 properties, or 1.67 percent, having foreclosure filings. Other areas in Arizona above the 1.19 percent national average for foreclosures were Phoenix-Mesa-Scottsdale (ranked No. 9) and Prescott (No. 27). No. 1 in the country is Las Vegas.”
One of the reasons that the lenders are sitting on so many properties is because they do not want to record all of the losses at once. Therefore, if you are facing potential problems with your mortgage, you need to make sure that you obtain the guidance you need to find out if you can save your home. Contact the home loan modification attorneys at Phillips & Associates today to schedule a free initial consultation.
Tags: abandoned properties, borrowers, home loan modification, home loan modification attorneys, lenders, Tucson market