45 Percent of Americans say government not doing enough to stop foreclosures; Other side of coin, over half of Americans want to buy a foreclosed home

According to a survey conducted by Harris Interactive® on behalf of Trulia and RealtyTrac, 45 percent of American adults say the government is not doing enough to prevent foreclosures. Only 17 percent think the government is doing too much and 16 percent say just the right amount is being done.The survey cites the “widespread prevalence of distressed homeowners facing foreclosures in today’s market” as one reason for American’s negative sentiment toward the government in this area, with 30 percent of homeowners saying they have, or know someone who, has applied for or received a loan modification, walked away, did a short sale or had their home foreclosed on. In other words, the foreclosure problem is right smack in the middle of mainstream America and is no longer isolated to just a small segment of the market.

Personal Knowledge of Distressed Homeowners Among American Adults
Total Homeowner Renters
Applied/Received Loan Modification 14% 16% 10%
Stopped Making Mortgage Payments 11% 14% 5%
Lost My/Their Home to Foreclosure 11% 12% 8%
Walked Away From My/Their Home 8% 9% 5%
Sold My/Their Home Via Short Sale 5% 6% 5%
Net Total 26% 30% 19%

*Survey respondents were asked if they had or knew someone who had done any of the following activities in the past 12 months.

Source Trulia/RealtyTrac

Lots of Interest in Buying Foreclosures…

On the other side of the foreclosure coin, are the opportunities foreclosures present to home buyers and investors that are in a position to take advantage of these often bargain-priced homes. According to the survey 56 percent of renter and 47 percent of current homeowners are at least somewhat likely to purchase a foreclosed home. A strong motivation for this desire is the expectation of saving money buying a foreclosure versus a similar home not under a distress sale situation.

Expected Discount for Buying a Foreclosed Home vs. Similar Non-Foreclosed Home
Total Homeowner Renters
No Discount 2% 2% 3%
1 to 15% Less 8% 8% 6%
16 to 29% Less 23% 23% 23%
30 to 49% Less 30% 31% 30%
More than 50% Less 36% 35% 39%

Source: Trulia/RealtyTrac

If you are interested in buying a foreclosure, click on the appropriate link below to see what is currently available in the St. Louis area:

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