On May 20th, Trulia.com and RealtyTrac released the results of an ongoing study that tracks homebuyers’ attitudes toward foreclosures.  Trulia and RealtyTrac conducted the online survey through Harris Interactive® from May 10-12, 2010.  The results indicate that, compared to a year ago, there is a decrease in consumers’ willingness to buy foreclosure properties.  Last year, 55% of U.S. adults age 18 and up would consider buying a foreclosed home.  This year, 45% of U.S. adults age 18 and up said they would consider buying a foreclosed home.  The survey also indicates that many homeowners are unwilling to walk away from their home if their mortgage is underwater.  Only 1% said walking way from an underwater mortgage would be their first choice, while 59% of homeowners said they would not consider walking away, no matter how underwater their mortgage is.  41% said they would consider walking away.  Pete Flint, Trulia’s co-founder and CEO said, “For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes. It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble.  Combined with decreased consumer interest around purchasing a foreclosure it may take even longer than anticipated to see true health return to the real estate market.”

 

For further information, check out this article