Life flows on after foreclosures – albeit with changes

Posted on July 29, 2009
Filed Under Foreclosure Homes | 1 Comment

Life flows on after foreclosures – albeit with many changes. Lifestyle is trimmed and sometimes expanded to include many options. Livings quarters are cut down while sharing with relatives and friends lead to expansion of day-to-day relationships.

Many are hunting around to find a corner that can be called a home. The collapsed investors are biting their nails while the market is flooded with unsold property that is leading to further woes and price falls.

According to Alex Charfen of Distressed Property Institute based in Austin, four out of ten houses in 2006 that were sold were either investments or second homes. But following the housing crisis 40% now come from the foreclosure category.

One of the victims of boom and bust is Chris Henning – now in her late sixties. She had lived in her investment unit that she had bought for $150,000 situated on South Palm Beach, Florida. Despite a good job during the heady boom days she refinanced three times starting from 2002. But fate had other things in store. Her boyfriend died and the revenue coming from a book declined Today she is unemployed and trying to sell her condo as short sale. She has moved into a smaller condo and has rented out her Palm Beach unit waiting for the ephemeral buyer to materialize. If she does not find a job soon, Chris will have to move in with her son’s family to clip expenses.

Chris is not alone. She is one of the many moving in with friends and relations to ease expenses. This has told on the rental market that was once expected to become strong following the wave of foreclosures for sale. According to the findings of a survey made on 40 big sized owners of property by Rent.com it has been noted that nearly half the vacancies in 850,000 units across USA, are because of people doubling up with others to save dollars.

9,000 properties across 9 states are managed by Bridge Property & Asset Management. They report that the vacancies of one-bedroom units have skyrocketed as more of the renters are hunting around for accommodation with more units.

Mark Obrinsky of National Multi Housing Council remarked, “I certainly believe that many people are now moving in with someone else, whether a family member or not, and that this is having a significant effect on the demand for apartment residences.”

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