The picture here, is one of vultures at the courthouse buying foreclosed homes in Arizona on trustee sales. This is just at the courthouse - law firms are holding trustee sales in their back rooms. One friend noted that there are very few minorities taking advantage of distressed homeowners. Interesting observation. I wonder if these people have any idea that by buying a foreclosure they are contributing the demise of property rights in America? True Confessions: Once upon a time, I wanted to flip homes. I could never again desire to do that, knowing what I know now.
Many of these homes auctioned off today will be in litigation, due to modification failures on the bank's part, fraud involved in the foreclosure, or fraud involved in original deed of trust. Almost every home has a break in the chain of title.
As one friend says, "If everyone would stop buying the foreclosed homes, the foreclosures would stop."
Everyone but the homeowner makes money on foreclosures. Banks are paid off, lawyers and real estate people make money evicting homeowners (who lose every penny put into house). The vultures buying the property make money. The State makes money in recording fees, taxes, and yes on settlements with banks for foreclosing wrongly in the first place. (dont' ask me why but instead of passing the million of settlement onto those who proved the fraud; the state spends the settlement on future prevention, and allowing those still in homes a reduced interest rate or some such nonsense.)
Home prices have fallen in past few months - In Arizona you can now buy homes for quite a bit less than their original purchase price when freshly built. For instance a home could cost 15,000 less than when first built in 1990. People were sold homes based on a false bill of goods. Would you have rented instead - if you had known the truth?