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Lots of people are defaulting but staying put until they are all but carried out of the house. I think the OP is talking about owners who are not in trouble financially not occupying their home until its sold. They are just going for greener pastures and hoping it sells once they are settled elsewhere.

And I'm noticing the same thing in my town, especially after one of the largest employers went belly up with no warning. It used to be unheard of here for people to not occupy until the house is sold, and now its the norm here.
 

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Not On My Watch
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We kinda did this. We put our house up for sale and we got a contract on it in 8 days but with the stipulation the other persons house closed. She already had a contract on it. She didn't want to do an inspection or any of that as we had worked with this person and my wife was very good friends with her. About 15 days into the deal the people buying her house cancelled the deal. Well, we had decided to rent in a town closer to my wife's work and it is hard to find a place in the country to rent. We found a great deal in the country so we rented it before the other people cancelled the deal. We hadn't moved much stuff at that point but the lady buying our house said she was still going to buy it with money she had saved and she cashed out her 401K because she was just in love with our house, so we went ahead and moved. About a week before closing her Realtor said she didn't quit have enough money and asked it we would finance part of the sale and when her house sold then she would pay us or she had 1 year to pay us the money. Those were her terms. We did not want to do it but with only 1 week to closing and now we don't even live there anymore we were in a bind so we agreed. Everything was going as planned and the day of closing our realtor called and said she just called and said she decided not to buy our house. So she lead us on for an entire month before she backed out.
So we didn't just leave our house and it could be that some other people had similar situations. If the buyers get 100% financing, which is still very easy to get, and realtors are not requiring large earnest money payments from the buyers then it is just to easy for them to back out at the last moment.
 

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Prepared Firebird
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I have a house on my block that (I think) qualifies for this description. Started out as a nice well-maintained house with a beautiful yard. The owners had it up for sale for over a year with no offers on it. Then they tried to rent it out. Even had a realty running open house on it as a rental property every weekend for 6 months. No one even came out to look at it that I know of.

Finally, these people just packed up and moved out. The house just sat there for several more months. Then, suddenly, strangers showed up and moved in. (And, if this scruffy evil-looking bunch actually is PAYING anything to be there......then I'm a NASA astronaut. LOL)

Personally, I think they are squatters, who are dealing drugs out of this house. The grass is at least three feet high in the yard. A few windows are broken. Cars come and go at all hours of the day and night......stay about ten minutes and leave.

This is, of course, not doing anything good for property values in the neighborhood. I just wonder how many times this situation is being repeated across the country.

I've thought about calling the cops and reporting it. But, I don't want to be targeted for retaliation by probable criminals.
 

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Inglorious Deplorable
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. . . If the buyers get 100% financing, which is still very easy to get, and realtors are not requiring large earnest money payments from the buyers then it is just to easy for them to back out at the last moment.

Don't blame the realtor on the low earnest money, that one is on you.

Consider asking for another $500 in earnest money every time a change / extension is requested.
 

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I've got a 3250 square foot house in a nice section of Dallas priced at $250k and nobody is even looking at it. And it's one of the nicer homes on the block. And Big D is supposed to be one of the better markets.

A little over two years ago, it was worth $325k. The mortgage is $165k, so I guess we'll keep dropping the price until it sells. Once (if) it goes negative, we'll probably walk away.
 

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I have a house on my block that (I think) qualifies for this description. Started out as a nice well-maintained house with a beautiful yard. The owners had it up for sale for over a year with no offers on it. Then they tried to rent it out. Even had a realty running open house on it as a rental property every weekend for 6 months. No one even came out to look at it that I know of.

Finally, these people just packed up and moved out. The house just sat there for several more months. Then, suddenly, strangers showed up and moved in. (And, if this scruffy evil-looking bunch actually is PAYING anything to be there......then I'm a NASA astronaut. LOL)

Personally, I think they are squatters, who are dealing drugs out of this house. The grass is at least three feet high in the yard. A few windows are broken. Cars come and go at all hours of the day and night......stay about ten minutes and leave.

This is, of course, not doing anything good for property values in the neighborhood. I just wonder how many times this situation is being repeated across the country.

I've thought about calling the cops and reporting it. But, I don't want to be targeted for retaliation by probable criminals.
Yep, thats the norm also. Then you do call the cops and the cops go and investigate and while the folks are still outside the cops will go and park infront of your house and knock on your door to let you know they informed them.
 

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أنا واحد
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6,631 Posts
I have a house on my block that (I think) qualifies for this description. Started out as a nice well-maintained house with a beautiful yard. The owners had it up for sale for over a year with no offers on it. Then they tried to rent it out. Even had a realty running open house on it as a rental property every weekend for 6 months. No one even came out to look at it that I know of.

Finally, these people just packed up and moved out. The house just sat there for several more months. Then, suddenly, strangers showed up and moved in. (And, if this scruffy evil-looking bunch actually is PAYING anything to be there......then I'm a NASA astronaut. LOL)

Personally, I think they are squatters, who are dealing drugs out of this house. The grass is at least three feet high in the yard. A few windows are broken. Cars come and go at all hours of the day and night......stay about ten minutes and leave.

This is, of course, not doing anything good for property values in the neighborhood. I just wonder how many times this situation is being repeated across the country.

I've thought about calling the cops and reporting it. But, I don't want to be targeted for retaliation by probable criminals.
How is it that nobody in your neighborhood has called the cops? That really sums up the problems we have in this country. Nobody does anything. They expect someone else to act. I'm not picking on you. Your entire neighborhood is guilty.
 

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Think about it for a second. Big business do it all the time ie: Trump etc..

You borrow at 6% for 500,000 to invest in a property. 3 years later that property is only worth 90,000 dollars. It would make no sense to keep servicing 500K at 6% for an asset worth 90K for the next 15-30 years when the rate of return historically for that asset is between 2-3% annually.

Even if you put down 25-30K it still makes more sense to default.

Trump does it all the time, he will go BK on any investment that goes bad and starts on a new one.
 

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I was gonna do that because the market sucks but i could afford it. iv got a baby on the way and in a 1 bedroom house so going a getting a bigger house i could afford wasnt a probly. the problem is the private mortgage insurance companys want 10% and 6 months worth of house payments a year of house insurance and property tax not including closeing so it came to about 16k which this guy just doesnt have sittin around.
 

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Two years ago every house on my street was occupied and today eight out of fourteen are for sale or rent. Things have gotten real quiet and only one family left with kids. All have left for other locations to find work. I actually started a small business from it, I bought 10 shipping containers and rent them for storage, $100 a month for each. Now I am getting 20 more next month. Many other people have asked about renting one!
 

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What would Mal do
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been wondering myself...our neighborhood is currently solid, but any of our places could tumble, mine for example, with another round of job loss. I survived 2008 11 months unemployment from my career position by scaling way back on spending, selling stuff, and relying on my small side biz to keep us going until i could get back into my regular work. It drained our reserve finances and made us late on some bills, damaging our credit rating..not that I want any new credit now.

So I don't know if we could make it through another year out of work if it hits.

but, 4 hours away I have a second home in an older neighborhood...it's mortgage free as it came to me via inheritance. At one point it was ballooned to a value of $160k..now I'd be lucky to get half that for it if I could sell it even for that.
several other homes on the street had become rentals and the became completely vacant with no signs in the front yard, and no maintenance being done. I don't have a clue if they have been repo'd by the bank, etc.

I'm currently renovating that little house as my cash flow allows and will try to sell it.. I won't go below $100k..at that point it's a rental property.
either way, the idea is to put that money towards my primary mortgage and get it knocked down.
In the meantime I've got the comfort of knowing I own a house in case times get really bad and I have to vacate my primary home.
but I've got to say that if I loose this main house which represents decades of working hard at my career, building up wealth, creating the American dream...if all that gets taken from me..and I will consider it taken..then I will have lost most of my incentive to contribute to this society.
 

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Big Business,Millionaires do it all the time. There is no morality in capitalism. You need to think on a strictly dollars and cents basis and cut your losses accordingly.
Just because others do it does not make it the right thing to do. Of course in my case my house has doubled in value and only 7 years left on the mortgage.
 
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