Friday, March 03, 2006

Home Reposessions Up In DC Area

A Washington DC area TV station has this report. "Experts said the once red-hot housing market is starting to cool, meaning home foreclosures are on the rise. But the news isn't bad for everyone. Home repossession men recover homes after a bank foreclosure. Kevin McFalls owns a Baltimore based property eviction service. He said the number of home repossessions he has overseen in the Washington area is starting to increase and that's good for business."

"According to McFalls, after an extremely slow year of repossessions in Montgomery and Prince George's counties once every few weeks, his company now takes over homes in those counties several times a week. He believes it is because of the cooling housing market, so homes aren't always selling right away."

"Doug Duncan with the Mortgage Bankers Association said he expects to see a slight rise in the number of foreclosures. Duncan also advises to be sure one has money in savings, saying people who are only paying interest-only loans now need to prepare to pay principal down the road, and should also try refinancing if they need to lock in a lower interest rate."

2 Comments:

At 6:21 PM, Blogger goose_egg said...

I'm still a little confused about the auction prices on foreclosed homes. In a previous thread, someone mentioned that it's the amount owed plus fees. But if these are bubble-based loans (inflated principle, low/no down) then won't even the foreclosure prices be overinflated too? How do we get a return to normal housing prices (e.g., 30-40% decreases in some places) if the foreclosure auction bids are essentially what people were buying the home for in a bubble market? I must be missing something important here.

 
At 8:08 AM, Blogger mort_fin said...

That's just the first stage of the property disposition process. if no one bids more than the amount owed the property is taken over by the lender, and the lender then sells it for the best he can get (usually a lot less than the amount owed).

 

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