Foreclosure for the Rich
Posted on October 22, 2008
Filed Under Foreclosures |
Sales on the real estate market in the USA are decreasing dramatically nowadays. If a few months ago, American homeowners were able to trade very quickly and to obtain profit from sales, now they are not able any more.
This is the case of the family Brown, in Greensboro, North Carolina. In April, last year, when the couple Brad and Jill Brown decided to sell at a price of 1.2 million dollars their house built in colonial style, which was actually extremely elegant and it was their own property. They were sure that they could trade very quickly and their profit would be considerable.
The house was built only three years ago, in a quiet neighborhood in the suburbs of the town and it had a large dining room with a fireplace made of stone and a yard full of greenery. The real estate agent they hired told them that they could sell the property in maximum one month. Eventually, the Browns had a favorable real estate history. For the last ten years, they had had in property other five houses that they were able to sell within the first month at a price that exceeded the purchase one.
Unfortunately, in this case things changed. The couple is still waiting for a purchaser for their property and they are tenants now in another house in Madison, Wisconsin, where they have moved in order to be close to their family. Even though Brad managed to be appointed manager within a logistics company, his family had to reduce expenses and to give up holidays in order to pay the rent of 2,500 dollars per month in Madison, the mortgage and the other taxes for the property in Greensboro.
Even though they reduced prices, Brad and Jill were not very successful with their property sale. They required eventually a price of 874,900 dollars, which can hardly cover the investment for renovation and daily house care.
They are afraid now of foreclosure. We have to mention that we have taken this example in order to let you know that even rich people can face foreclosure. They have even rented a garage in order to gather more money. They were though a happy case because they managed to collect much cash so that they did not have to lend more money. However, they had never thought that selling that wonderful property could be so difficult.
After about one year since the news of mortgage decrease has been a sensational topic on the front page of the newspapers, the case of Brown family shows that foreclosure is a threat not only for poor people, but also for rich ones.
A week ago, the last figures showed that in the USA properties prices decreased in average with 14.1% compared to the previous year, whereas the Commerce Department stated that new properties sales reached the lowest level since 1991. Unfortunately, this problem cannot be solved overnight. In this case, people must be united and help each other in order to face and overcome it together.
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