So how do foreclosures drive down prices? Well, banks want to get bad loans off of their books, so they put their supply of foreclosed homes up for sale at super-low prices. If a foreclosed house on your block sells for $100,000, when your own house is appraised at $250,000, good luck getting your asking price, once the Realtors and appraisers take a look at the neighborhood’s recent comparable sales.
Another complication: Fraud. Take Monday morning’s announcement from the Department of Justice about the case of Christopher J. Deans.
Mr. Deans, a Raleigh, N.C.-based real estate investor, pleaded guilty >>> Keep reading entire article by clicking on title link above.