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As everyone knows real-estate has been reeling with problems lately. Property values have dropped significantly, making foreclosures for many homeowners immanent. Home foreclosures in fact are at an all time high.
Well, there is more to impending foreclosures than meets-the-eye. Devalued property values are not the only problem. Rapidly rising fuel costs and layoffs have added to and made the situation even worse. For those who made variable interest rate mortgages, that doesn't help, either.
Basically, though, those who bought houses in the inflated market prior to the real-estate crash owe more on their homes than they're worth. They are caught in a mortgage trap from which they cannot escape.
When people owe more on their homes than what they're worth, they cannot sell them, plain and simple. Either they sit on the mortgages, make the inflated payments or they walk away. If they lose their incomes they lose their homes. They have no choice but to face foreclosure or simply walk away... And, herein lies another huge problem.
A friend of mine told me he just bought some new kitchen cabinets for his house. He said he got a great price on them because they are used. He further explained that while looking at furniture a couple had advertising in the classifieds, he was offered the kitchen cabinets at an unheard of price when he complimented them on how nice they looked in their kitchen.
I'm afraid my friend got ripped-off because he was told he could not have the cabinets until the people moved out of the house. Luckily he only left a small deposit and not the whole amount. You see it is likely the house is being foreclosed on.
The above situation is not a new one. People, who know when their homes are about to be foreclosed on, in preparation sell everything they can, even the light fixtures. When the bank gets the house back there's nothing left but a shell. In my friend's case he will likely never see the kitchen cabinets because the bank will take possession of the house before he can get them.
When people are desperate, they do desperate things. If they are losing their homes to the bank for whatever reason, especially if they owe more on the house than what it's worth, they will gut and sell everything in and on it. The logic is: Why let the bank have the stuff? At least they can get some of their money back.
Anyway, the immanent situations are increasing and it's anyone's guess where all this will end. I suppose we will just have to wait and see, and I sincerely hope you are not one of those who are so misfortunate.