I am currently looking to relocate for a job, and have had a hard time finding property that was exciting enough to inspire me to move. The funny thing is, I was looking at how property was being sold and have found the usual foreclosures in the area – something that is becoming more prevalent these days due to over inflating the value of homes with the ease of which loans were being assigned.
The real estate game is definitely part of the blame for the economic deflation we are going through right now. And it is looking criminal.
I found a property that was sold for $200K in 2002 then re-sold in 2005 for $479K. It was then bought by a bank for $100.00. Yes, one hundred bucks. Sounds crazy? Well, look how much it was being listed for now – $350,000.
It makes one wonder how is it possible to buy houses for fractions of pennies on the dollar in order to flip it for a huge profit? And how do the banks get away with this considering they made the bad loan in the first place and where given a stimulus bail out package, only to buy the property back and flip it for massive profits? Special interest groups and lobbyists, of course.
Just another problem churning in our economy that has to be fixed. I have no solutions as I really don’t have a working knowledge of real estate. But if anyone else can comment, please feel free to do so – it is something worth looking into. Besides, with so many people upside down in their homes it would be a benefit to the economy for people to purchase foreclosed homes in order to reinstate some worth in their portfolio. Our economy is only as strong as the weakest among us.