Today is the first time I've head the term "vampire" foreclosures.The Palm Beach Post. The article by reporter Kimberly Miller states that these foreclosures are defined as "homes that have gone through the court proceedings and are bank-owned and still occupied by their previous owners."
I say, That's one way to fight back!
Although there are no foreclosure efforts at this time (to my knowledge) on my home, I have no doubt that CitiMortgage and FannieMae and the other investors would love to take possession of my home and sell it at a cheap price so the next owner (probably hand-picked by the bank) can reap even more profits. Yes, I'm one mortgage payment behind - and have been for nine months - and yes, their fees have jumped so far to over $900. This means instead of having to pay them $2,000 to catch up, I have to pay them over $3,000 for my one-payment delinquency because of their late fees. But I am not giving up.
The article quotes Daren Blomquist of RealtyTrac realtytrac.com as saying that "Up until recently, the banks have not had a huge motivation to kick them out because home prices were not increasing and the banks had so many properties they were dealing with." Miller goes on to report that "47 percent of bank-owned homes are occupied by their previous owners."
"These are still distressed properties and will typically sell at a cheaper price", said Blomquist.
Lastly, Miller's article concludes: A slowdown in asking prices has already been measured by online real-estate analysis firm Trulia. Jed Kolko, chief economist for Trulia, trulia said expanding inventory and a decrease in investor activity is leading sellers to lower their expectations. 'Asking home prices give us the first look at where home-sale prices are headed, and they point to a slow-down'",
NOTE: Future posts will be on 1) residential appraisal methods and practices and 2) an analysis of one homeowner' rejection of a HAMP application (hint: the investor was the obstacle).