Whether you have a home or are trying to buy a home in the Southeast, bankers in areas hard-hit by foreclosure are starting to listen to market pressure to provide a service people can afford. In places, like Florida, that had some of the highest foreclosure rates in the nation, bankers are becoming increasingly more proactive in helping people buy or keep a home. Some, like Riverside Bank in Cape-Coral-Fort Myers, are even knocking door-to-door on delinquent owners and offering interest rates of 1.99% on revised terms.

Why They Are Doing This

The reason for this is clear: Banks and lenders lose money on foreclosures. It’s far better for them to lose just a little money on an interest rate and keep you paying, than it is to lose the entire amount on their books. The banks and lenders have come to realize that people are struggling and will simply hand in their keys, a term that is now coined “jingle mail,” instead of paying their mortgages. In order to serve distressed areas best, they are being forced to offer creative financing terms that people can afford and some interesting new proactive planning on those that still go into foreclosure.

Were You Priced Out of the Market Before?

If you are one of those people who serve the public day-to-day in low-paying, but community-critical jobs like teaching or fire-fighting, banks want to talk to you. Like Riverside, many are now looking for buyers who earlier could not afford to buy, but now make their perfect customer base, due to falling real estate prices. They will offer attractive interest rates (make sure they are fixed) and special offers on foreclosed homes. There are even bus tours now set up by the local business owners to help sell these distressed properties. Just be careful to check out the inside, as the risk of damage to the home can be higher than one that is not foreclosed upon.