With nearly 50 percent of foreclosure homes still being occupied by the homeowner or previous borrower, it makes you wonder if its the banks fault or the homeowner’s? Who’s really to blame for owners staying put in a home that’s being foreclosed upon?
It’s no secret that short sales are not short and will typically take anywhere from three-to-nine months and potentially longer due to the back-and-forth negotiations between the seller, buyer and banks.
A good friend of mine went through a short sale and the banks stalled so much that the home eventually got foreclosed upon through no fault of the owner. The previous homeowner did all the right things to facilitate a short sale and definitely had a valid means of doing so, but the bank delayed the purchase and sale agreement despite having an actual offer. They delayed the process so long that the previous homeowners received a very big red flag on their credit history due to the foreclosure. And a foreclosure flag is much more devastating than a short sale.
Because of foreclosures and bad credit, homeowners are finding themselves not being able to buy again for several years.