Home Resale has Become a Common Feature with Foreclosures High
This is one of America’s most challenging phases. As unemployment levels rise, people are faltering on loan payments. Hence, foreclosures have reached an all-time high. Now home resale at various auctions has become a common feature. Take, for, instance, 322 Crane Boulevard in Los Angeles. Countrywide, which is part of Bank of America, is facing a tough problem here. For about two years, Alfred L. Crawford, has not made his loan payments. Countrywide has already threatened to foreclose the home. Now Crawford’s dues are to the tune of $800,000 although the value of the house is not even $500,000.
Crawford wanted to sell the house and even found three willing buyers but Bank of America is not letting him sell the property. The reason is Crawford was trying to palm off the house at a price which is less than what he owes the bank. Popularly known as short sale, the BOA did not want Crawford to indulge in it. It may be noted that the first person offered $620,000. The third person has only offered $465,000. Crawford observes that the bank is not acting responsibly.
A closer look into 322 Crane Boulevard facts reveals very complex accounting procedures. BOA had ordered an appraisal of the property twice at the request of Crawford. The bank gave the order to Landsafe, which is its subsidiary. It also paid the company $900. Crawford has stopped paying insurance on the property and BOA secured the payment from yet another subsidiary. Now BOA will collect payments whenever Crawford is able to palm off the house. Crawford’s real estate developer Brian Moore of Prudential California Realty, says that BOA is acting like robbers. It is only trying to be eager as to how it can make more money when the property is sold.
David Sunlin, BOA’s Senior Vice President, says there have been several miscommunication issues. But he maintained that the bank’s intention was well. He also said that he had to protect the interest of the investors. There are risks involving reputation also. A spokesperson of the bank said that BOA possessed another mortgage on this house. The balance was $85,000 and was prepared to take the full loss on the property.
Experts agree that the real estate scenario is indeed bleak. It has been very badly affected due to the recession. Now the government should create more jobs to heal the economy and the real estate market.
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