More and more homeowners, faced with foreclosure, are just stopping making payments and enjoying the extra cash they have to enjoy life while the bank takes its own sweet time throwing them out. In Florida, attorneys are making a very nice living helping homeowners delay the proceedings even longer. I’m sure Bridgeport, home base for most bankruptcy attorneys, has a full bank of lawyers eager to help you do the same thing here.
Does it work? You bet. There’s one house I know of that has been in default and ready to go via foreclosure for over a year now. The owners stopped making payment a long time ago when they realized a total loss was inevitable and have been trotting off to Europe and enjoying winter in the Caribbean ever since. Whereas they once had passed word to their broker that they’d accept any bid that would pay off their mortgage (about 2/3 of the then asking price) once their equity disappeared they decided to hold fast to the ask, knowing they won’t get it, because they prefer their current situation.
And why not? How many people have ethics that forbid them from taking advantage of a bank’s laxness? Not many, I suspect. Look for this to be the new model of homes for sale in Greenwich: over-priced and going nowhere, just the way their owners like it.