That's what makes no sense. People were still losing their homes, but the banks were getting some or most of their money from Fannie/Freddie, yet the foreclosed home sits empty. It just seems like this was a botched enterprise, that could have been handled better.
If the banks work with the homeowner....the bank loses interest money, maybe some on the principal.
If the banks foreclose on the property....the bank is able to take the loss and reduce the banks debt to the IRS.
The banks need to wake up and realize that there
are not enough qualified buyers to purchase all these empty foreclosed homes!!Many areas of the country had a surplus of available homes
prior to the housing crash 18 months ago.
Now add in all the foreclosure properties and short sale properties.
The ratio of available properties to "ready, willing and ABLE" buyers are no where near level.
Now add in all the people who are just hoping to hang on to their jobs or are not willing to change their financial status with a different mortgage.....they aren't looking for a new(to them) home. They are staying where they are and if they can, are updating their existing home. Lowe's and Home Depot are doing great because of this.
The whole bailout for the mortgage business was sort of a sham. It's helped the mortgage companies stay alive....but has done little to help the consumer (homeowner).