What the Guy Told Me Yesterday
So, I was talking to a guy yesterday-30 years old, married, two kids. He mentioned that his housing situation was "uncertain", so naturally I asked him what he meant.
This is where it got interesting.
He explained that his parents had filed bankruptcy and moved to another state. His parents hadn't paid their mortgage in two years.
This is where I got irritated.
Then, he told me (someone he just recently met) that he, his wife and two kids, were living in his parents/the lender's house. He said "the bank" might kick them out at any time, but it was great because they only had to pay for utilities! It sounded like they'd been living there for "free" for several months.
That's when I realized that we have a problem.
Of course, this story is anecdotal, but I have talked with several other people in recent months that have had similar conversations. One lady hadn't paid her mortgage in three years and was renting her house out. Another woman had been employed full time for years and hadn't paid her mortgage. I have to believe that this is just a snapshot of the situation nationwide.
Have you had conversations like these?
These properties would fall into the category of "shadow inventory"; foreclosed properties that haven't hit the market yet. It looks like there will be REO deals for the foreseeable future!
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Comments (2)
Like I said, I've talked to several people w/ similar experiences. However, I believe that the current environment in our country is hostile towards business in general and "big banks" specifically. This contributes to the mentality that people are entitled to someone else's money. The impact on inventory will be to continue to delay and suppress the release of foreclosed homes onto the market.
Travis Daggett, about 11 years ago
A common story indeed. What data do you have to quantify the problem? What do you believe the impact will be on inventory in 2013?
John McCombs, about 11 years ago