Lenders as Sellers

More and more deeds being recorded at the Middlesex North Registry of Deeds in Lowell have major lenders as the seller as they unload properties that they bought back at recent foreclosure sales. July 31 provides a good case study. Of the 76 deeds recorded here that day, national lenders were the sellers on seven of them.

The average indebtedness that led to the foreclosure was $319,900 while the average amount realized on the subsequent (post-foreclosure) sale was only $248,600, a loss of 22%.

Of the seven borrowers who lost their homes, four had used the mortgage to finance 100 percent of the home purchase, and three others were established owners who had refinanced.

It's possible that lenders who buy back property at foreclosure may be selling such properties rapidly and at a loss in order to quickly raise cash in a struggle to remain solvent.