With the number of foreclosures increasing around the country, homes are taking longer to move.
Patty Milbourn is trying to sell what she calls a one-of-a-kind house in Midtown Kansas City a five-bedroom and three-bathroom house in the historic Coleman Highlands neighborhood.
The problem is, it just won’t sell. The house has been on the market for 16 months.
“I thought it would go just within weeks of putting it on the market. Big surprise,” Milbourn told KMBC’s Jere Gish.
Milbourn said she has dropped her asking price more than $100,000, and she’s had to dip into her savings to pay for two mortgages.
“I’m so frustrated because you just don’t get it. You just don’t understand why such a nice house would not sell,” Milbourn said. “You hear stories about it happening to other people, but you don’t think it’s going to happen to you.”
Nationally, foreclosures doubled in the third quarter. California and Nevada have the highest number of foreclosures, but Missouri is up 75 percent. Kansas is up 22 percent.
Experts said questionable loans led to the problem.
“By pushing people into a position they couldn’t afford, when those two years (adjustable rate mortgages) adjusted, the affordability factor became very difficult,” said Terry O’Neill with Pulaski Bank Home Lending.
Some lenders and real estate agents said it’s going to get worse before it gets better.
Meanwhile, Congress is considering legislation that would cut down on predatory lending practices.