Supply and Demand | Banks backing off on foreclosures in Palm Beach County

Why?

Because of supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values.

Once a lender takes back a home, it pays the costs of owning the property, including insurance premiums, homeowner association fees and maintenance. So banks seemingly have decided that it makes sense to leave a borrower in the home.

DING, DING, DING!

You win a prize…

So you see, it is NOT the homeowners delaying the foreclosures, it’s the banks.

Why doesn’t everyone get this by now.

The banks do not want the properties and there is no one lining up to buy them but the message is get the deadbeats out so we can move the economy forward.

This is simply not factual.

When will they realize this is the wrong approach?

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Banks backing off on foreclosures in Palm Beach County

In an unexpected bit of fallout from the real estate crash, lenders are filing far fewer foreclosures.

Alas, that’s not because the economic picture is improving but because the housing market is flooded with repossessed homes, and banks and courts are inundated with default proceedings.

Foreclosure filings in Palm Beach County plunged 70 percent in July, August and September compared to the same three months a year ago, research firm RealtyTrac says in a report to be released today. Filings fell 57 percent in Florida and 34 percent nationwide.

In normal times, a sharp decline in foreclosure filings would be cause for celebration. But these aren’t normal times.

Nearly 2 million Floridians owe more than their homes are worth, and the state’s unemployment rate has been stuck above 10 percent for more than two years.

Foreclosure experts say several factors have lenders taking back fewer homes. One is simple supply and demand; banks typically sell properties they repossess, and they know that putting more homes on the market will hurt values.

“The banks don’t have a motivation to push these through quickly,” said Tom Ice, a foreclosure attorney in Royal Palm Beach. “There’s a lot of expense involved in owning the houses. And they understand that flooding the market with properties is going to push down the resale value of their own properties.”

John Tuccillo, chief economist for the Florida Realtors, agrees.

“Banks are in business to make as much money as they can, or to lose as little money as they can,” he said. “It’s a bad business decision to flood the market.”

You can check out the rest of the report from the Palm Beach Post here…

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4closureFraud.org

Comments
10 Responses to “Supply and Demand | Banks backing off on foreclosures in Palm Beach County”
  1. talktotennessee says:

    Well, they can back off a sale because they have improper paperwork in judicial states or in non-judicial states, they take over and bulldoze the house or, as dotty on Greenspan says, they can just burn it down so they won’t have to clear the title.

  2. COCO says:

    People are more aware now that they can fight for their homes and probably win. I was successful in getting my own foreclosure sale cancelled by my lender A DAY BEFORE THE SALE. They knew they couldn’t win and they had FINAL SUMMARY JUDGMENT. I was successful in getting a friend’s foreclosure sale rescinded by Wells Fargo. That’s right. The property was sold at auction in Lee county. The sale was rescinded because of fraudulent paperwork. THE BANKS ARE LOSING GROUND. CONTINUE TO FIGHT.

  3. COCO says:

    The banks are foreclosing on less properties simply because they know they do not have clear tiltle. It has nothing to do with the market. You can’t sell what you do not own. Why pay taxes, insurances, etc. on a property that has been obtainned by illegal means. You’ll have to give it back. They are not dumb.

  4. see says:

    I find it ironic that just above the comments is an ad for FIND FORECLOSURES. At least that is what my screen has. Just saying.

    We all know that whevever they can the banks blame the deadbeat homeowners for everything. No the economy is not getting any better. Foreclosures slowed down for a little while because of the robo signing mess and sloppy paperwork. It was reported to day on the news that the filings have gone up again. So now they can get down to the business of kicking people out. They will continue to foreclose on homes as long as it is profitable and at their own pace.

    • see says…..Are you still believing what the News say’s ? They can tell you anything they want to…remember who owns the media……certainly not our friends…..they can only say what they are allowed to say….same with Newspapers….and it sure isn’t anything in our favor….I stopped all TV almost 6 years ago and all newspapers….I will not waste time or money on nothing but crap…..I have learned more reading and on computer….

  5. Stupendous Man - Defender of Liberty, Foe of Tyranny says:

    Heh, heh, the entire business model has been bad business.

  6. talktotennessee says:

    [President Bill Clinton] http://www.chicagotribune.com/business/ct-met-bill-clinton-ideas-week-20111012,0,2576664.story
    “He called for reforms to the corporate tax system and said the economy will never fully recover unless the country addresses the mortgage crisis. He suggested that banks write down or extend existing mortgages at today’s low interest rates, and if people still can’t pay, allow them to lease their homes for five years with the opportunity to reconvert to a mortgage.”
    Those of you who are connected: Please repost his comment to all your sources. President Clinton still carries some influence and could help make this happen. If he speaks much in his new book (Back to Work) tour it could seriously be presented as an entrance to helping housing or recovery mode. He also mentioned the OCCUPY movement favorably and talked about Washington being paralyzed. Readers, we have so few options. We can’t count on the AGs and if we don’t speak up, speak forcefully, eventually others will speak for us.

  7. Mario Kenny says:

    Ding Dong, the donkey is coming to town, LOL. I have a story of a dead Donkey. This farmer had a wonderful Donkey, but he needed money, so he consulted with his friend and decided to raffle the donkey at $1.00 per ticket.
    upon selling 90% of the tickets the donkey died, the farmer was so sad and in trouble with the people who bought the tickets, he consulted his friend and decided to sell the additional tickets, and when the winner was selected, the plan was in place to refund the money for the winning ticket at cost being $1.00. However a small problem arose, being, the winner did not want a refund and demanded the donkey.

    The farmer said but Sir please!!! the wonderful donkey died, what will you do with a dead donkey? the winner proclaimed in alta voice, ” I will raffle the donkey”, well this is what the nasty ass bankers did.

    they sell dead donkeys all fuckin day.

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