What's Hot: The 4 Projects in the Works Near DC's Starburst Intersection | A 153-Room Aloft Hotel Pitched For Mt. Vernon Triangle
Banks Walking Away from Foreclosures
![Banks Walking Away from Foreclosures: Figure 1](https://assets.urbanturf.com/dc/images/blog/2009/03/bank_owned_280.jpg)
Something weird, but perhaps expected, is happening in the housing market: Banks are walking away from foreclosures. According to The New York Times, financial institutions are deciding against taking possession of certain properties because the costs (legal fees, maintenance, etc.) are exceeding the actual value of the home.
Experts say that a soft housing market and the disrepair that a house can fall into as it sits empty awaiting its fate are two major factors that result in the bank’s decision. And when they decide to walk away, the troubles just come back to the property owner.
From The Times:
“The so-called bank walkaways rarely mean relief for the property owners, caught unaware months after the fact, and often mean additional financial burdens and bureaucratic headaches. Technically, they still owe on the mortgage, but as a practicality, rarely would a mortgage holder receive any more payments on the loan. The way mortgages are bundled and resold, it can be enormously time-consuming just trying to determine what company holds the loan on a property thought to be in foreclosure.”
This article originally published at https://dc.urbanturf.com/articles/blog/banks_walking_away_from_foreclosures/737.
Most Popular... This Week • Last 30 Days • Ever
![What Are the Annual Maintenance Costs When You Own a Home?](https://assets.urbanturf.com/dc/images/blog/2023/04/resized/home-improvement-tools--280_image_560x420.jpeg)
In this article, UrbanTurf looks at the estimated annual maintenance costs associated... read »
![A First Look At The New Plans For Adams Morgan's SunTrust Plaza](https://assets.urbanturf.com/dc/images/blog/2024/04/resized/1800-1_image_560x420.jpg)
Another concept has been unveiled for one of DC's most contentious development sites,... read »
![How Much Did DC-Area Rents Rise At The Beginning of 2024?](https://assets.urbanturf.com/dc/images/blog/2024/04/resized/REVA_image_560x420.jpg)
Renter demand has continued to push Class A apartment rents in the DC region up this ... read »
![The 4 Projects In The Works Near DC's Starburst Intersection](https://assets.urbanturf.com/dc/images/blog/2024/04/resized/hechinger_image_560x420.jpg)
The big news in the development pipeline east of DC's H Street Corridor is the resur... read »
![152-Room Aloft Hotel Pitched For Mt. Vernon Triangle Site](https://assets.urbanturf.com/dc/images/blog/2024/04/resized/HOTEL-RESIZE_image_560x420.jpg)
A new hotel has been pitched for a development site in Mount Vernon Triangle that has... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro