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I don’t even know where to start with this one simply because for my Plainfield neighborhood it’s not just one or two homes in foreclosure, there is at least 10 that are bank owned already with at least another 10 that are well on their way.

There is no doubt that foreclosures will bring down the property values in Plainfield and Naperville neighborhoods, but what about the eye sores they become within the neighborhood?

The weeds are covering the walk to the front door, and the lawn hasn’t been cut all summer.  There is significant amounts of debris from long gone Spring storms that swept through the area…

Contacting a Homeowners Association or the village about a problem with unkempt properties in your Naperville or Plainfield subdivision may seem like the answer, but until the bank actually regains possession of the property, there isn’t much that can be done about the disheveled condition of the exterior until the property is sold either back to the bank or to new owners.
 

Are Plainfield and Naperville foreclosures starting to affect your neighborhood?

As a responsible person, the whole idea of not paying the mortgage seems crazy to you.  Perhaps you have faced tough times too, BUT… you didn’t get through it by using our credit cards, or the equity in our home. You’re not only angry that your neighbors left you with a vacant eyesore in the lot next to yours, they made it your business by trashing the property and bringing down the value of your home.

There is a difference between luxury and necessity.  Cable is a luxury. Cell phones are luxury. Internet is a luxury. Air conditioning is a luxury. Eating out is a luxury. New clothes are a luxury. New cars are a luxury. Entertainment is a luxury… food, water, and shelter are necessity.

For people who have fallen on hard times, you would expect to see some refraining going on, but what happens when homeowners in foreclosure haven’t scaled back and haven’t done without to make ends meet?

For those sellers in default, trying to sell their house through a short sale before the auction will probably cause the bank to not very open to negotiating the sellers debt.  Part of the process of a short sale includes close and careful scrutiny of a seller in default’s bank statements.  They have to prove they haven’t been able to afford their payments due to a hardship from the time they stopped making their payments.  If there is an $2,000 purchase at Best Buy for a new flat screen t.v. on their bank statement, you can probably bet that the bank won’t be letting them off the hook too easily.

Buy many of the homeowners in default aren’t even trying to work with the banks.  These are the homes with the unkempt lawns, broken windows, and run down exteriors. These are the abandoned homes that were never listed for sale.  Does this make you angry? 

Here is why everyone isn’t willing to swallow the sub prime excuse anymore:

Adults who have the privledge of due diligence, have the opportunity in America to be EDUCATED in the home buying process.

I’m a Realtor, and yes we’ve taken our lumps for the situation too.  The thing is though, my fiducuary responsibility as a Realtor is to be the procuring cause of the sale, not determine and decide what my customer can afford to pay each month.  I think that many buyers even today would benefit from pre-purchase counseling or homebuying seminars.

Why do Plainfield and Naperville families lose their homes to foreclosure?

Death, divorce, disease, devastation, and debt. 

I have worked with some unfortunate sellers who have faced hard times, and on the flip side of that I have worked with some sellers who by their own admission made very bad financial decisions.

There are sellers out there who have done the right thing by trying to sell the house to avoid a foreclosure… but there are many more homeowners in foreclosure who leave behind a damaged property, sticking it to the lender, and in the end… ultimately you. 

Everyone pays the price for the surge in foreclosures one way or another, whether it’s through depreciation on the value of your home, or through a reduction in the amount of money banks are willing to lend customers with good credit.  Both of these situations affect the economy in big ways.

Is there an end in sight to the amount of foreclosures in Plainfield and Naperville, IL?

The only end to the current state of the real estate economy that I see is a call for more proactive measures from homeowners in default who need to try to sell their homes before they become bank owned properties.

Instead of walking away from the house, I would suggest to anyone facing foreclosure to put any money that they can save into a bank account to cover the difference between what the house can be sold for quickly against depreciation, and what the bank will accept as a short sale. It could also be use it to build up a cash reserve that can will cover your first months rent and security deposit when the time comes to move and get back on your feet.

Even after the auction, the lender can file a judgement against you for the difference between what the house sells for at the auction and what you currently owe your lender.  You are always better off trying to sell your house instead of walking away. If you are facing foreclosure and need an agent that is experienced with performing short sales, call me at 630-673-6233.

If you are looking to find a property below market value or want to invest in the Plainfield or Naperville area, I can help you find a house that meets your needs.