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99% of the time not by a long shot. Here’s a look at the facts. Fact is the mortgage balance amount owed does not mean property or market value.

Many mortgage lenders loaned out 110% to 120% of a property's market value to the buyer. In other words, if a property's market value is $100,000.00 they would loan out as much as $110,000.00 to $120,000.00 against it. Now you ask why would and lender loan out more on a property than its current market value? Not to get into poor assessed evaluations and appraisal practices, which is a whole separate house of problems, “no pun intended" back to the question why? First, to pull out and fund there upfront profits from loan originations to closing costs, to the spreads on loan rates, selling certain high profit loans to uniformed consumers. Second, the buyer qualified by past standards and well isn't property always supposed to go up in value? So they will loan out in advance 3 to 5 years of anticipated market appreciation and when the buyer resells 5 to 7 years later " on average" the value would have caught up to and would be greater than the loan "opps" that only works in growing economy and market with low unemployment, so if the home owner has an employment issue " no job" and no "margin" of equity in the home no "mission" to stay, they hand the home back to the bank, " There other wise fair weathered friend" So along comes the next buyer of the shorted or foreclosure home. They believe that buying it for less that what it is owed on the home was a great deal. When all they really did was buy a home at market value, not to mention home that likely needs thousands of dollars of maintenance and conditioning.

So what the lender looses is simply the excessive fees, profits and loan spreads and interest charges they have used to drive billions of dollars of profits to their bottom line over the past decades from the sweat and labor or their uninformed customers. Maybe when all the dust settles, they will put the consumer in the loans best suited for the consumer rather than the ones that are the most profitable to them (a more transparent lending process) After all, he who controls the gold makes the rules.

So from my perspective, most of the best opportunities and values come from purchasing homes owned and cared for not over loaned and uncared for. With a well trained Real Estate Broker helping you through the process of shopping by comparison and with the proper market value perspective, you'll find the best home for your money and the best money for your home.

Call 810-987-8600 today for a good perspective.