Record numbers of homes in North Carolina are getting foreclosed or are being sold at very low prices to investors who buy short sales. This creates a lot of problems, not only for homeowners, but also for business owners, particularly those involved in the real estate market.
Greensboro foreclosure investing has been enjoying reasonable success prior to the housing market crisis, hence the interest of a lot of real estate investors, including Richard Rhyne. However, as the recession hit and the housing crisis results in stricter lending rules, Rhyne, like most real estate investors, finds himself having difficulties keeping his loans current.
Recently, the businessman has filed for Chapter 11 bankruptcy protection in relation to several of his buildings in Greensboro. This development shows that the housing market crisis is not only resulting in North Carolina foreclosed homes but also loss of commercial properties and businesses.
According to Rhyne, his situation is not unique, a lot of investors who purchase foreclosed homes for sale and other real estate items have also suffered from the economic downturn and the housing crisis. The businessman has filed for protection on several downtown properties, including the one at S. Elm Street where his antiques dealership business is located.
Despite the bankruptcy filings for the properties, Rhyne reveals that his antique dealership will not be affected since it is run by a different entity. With more properties being sold to investors who buy short sales, the whole area's property market has declined in value, the impact of which is also felt by businesses in the area, including Rhyne's.
According to Rhyne's lawyers, although loans on some of the properties are current, they are still included in the filing since bankruptcy cases require all assets to be included, regardless of whether loans are delayed or current. The lawyer adds that such cases are filed to control properties with considerable equity.
The move is a significant one for Rhyne since he has owned real estate in Greensboro for decades. However, as the economy declines, he found it difficult to keep up with loan payments and his real estate business suffered. The high rates of foreclosure activities and big number of homes being sold to those who buy short sales have also not helped.
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