Fires of Heaven Guild Message Board - View Single Post - Fannie Mae & Freddie Mac

Lefazz · 09-28-2008, 10:34 AM

Question for you economics savvy types:

We have home owners defaulting on their mortgages and losing their homes. All around my area there are empty houses priced way more than what they are worth or what people can afford (ex. we have a subdivision with homes starting at 350K and the majority of the people in this area probably earn somewhere between 20K-40K a year -- totally out of their reach).

Banks own these houses now...so why don't they sell them for whatever they can get? If you have a retail store with inventory and the inventory isn't moving, you slash prices...even take loses to get it out of the door to at least have some cash flow. Why isn't the same being done with these homes? Prices are coming down a TAD but not enough for people to afford.

Probably an ignorant question, I suppose, but I don't get why empty houses are just sitting there rotting.

09-28-2008, 10:34 AM	#699 (permalink)
Lefazz Registered User Join Date: Aug 2002 Posts: 1,681	Question for you economics savvy types: We have home owners defaulting on their mortgages and losing their homes. All around my area there are empty houses priced way more than what they are worth or what people can afford (ex. we have a subdivision with homes starting at 350K and the majority of the people in this area probably earn somewhere between 20K-40K a year -- totally out of their reach). Banks own these houses now...so why don't they sell them for whatever they can get? If you have a retail store with inventory and the inventory isn't moving, you slash prices...even take loses to get it out of the door to at least have some cash flow. Why isn't the same being done with these homes? Prices are coming down a TAD but not enough for people to afford. Probably an ignorant question, I suppose, but I don't get why empty houses are just sitting there rotting. Last edited by Lefazz; 09-28-2008 at 10:37 AM..