Thomas interviewed real estate agents, real estate lawyers and foreclosure auctioneers, and examined foreclosure sales data and determined the sales favored investor buyers who are more able to absorb the risk of a foreclosure sale.
Published in the journal Housing Policy Debate, the study states because of the consolidation in the mortgage service industry, the majority of mortgages are handled by a few large organizations with numerous loans. As a result, they tend to have a one-size-fits-all approach in dealing with delinquencies and foreclosures, leading to properties selling for lower prices. These properties in turn have a higher risk of being vacant, leading to crime and other neighborhood problems.
As MHProNews understands, she suggests the servicers work with the homeowners to find affordable mortgages and then let them to re-purchase their foreclosed homes at current market value. This allows the homeowners to retain their homes which in turn adds stability to the neighborhood and reduces problems all around. ##
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