Trulia.com and RealtyTrac released the latest results of an ongoing survey tracking home buyers’ attitudes towards foreclosures. The new online survey conducted on their behalf from May 10-12, 2010 by Harris Interactive® showed a notable decrease in consumers’ willingness to buy foreclosed properties compared to one year ago.

Currently, 45 percent of U.S. adults age 18 and above are at least somewhat likely to consider purchasing a foreclosed home in the future, compared to the 55 percent of U.S. adults age 18 and above surveyed online by Harris Interactive® between May 1-5, 2009.

Underwater and Walking Away »

They report that only 1 percent of homeowners with a mortgage say walking away from their home would be their first choice if they were unable to pay their mortgage.  If their mortgage were to go “underwater,” 41 percent would at least consider walking away, while 59 percent would not consider walking away no matter how much their mortgage was underwater.

Other Survey Results »

• 59 Percent of homeowners with a mortgage would not consider walking away from their home no matter how much their home is “underwater”.
• 1 Percent of Homeowners With A Mortgage Say Walking Away Is Their First Choice If Unable To Pay; 69 Percent Say Modifying Their Loan is Their First Choice
• While the stigma around owning a foreclosure has subsided, interest in purchasing a foreclosure is significantly down year-over-year
• For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes. It now seems clear that government programs will not reach the overwhelming majority of homeowners in trouble
• 18 percent of U.S. adults expect bank-owned homes to offer a realistic price discount of less than 25 percent off the value of a similar home that was not in foreclosure
• 36 percent saying that they expect to receive a discount of 50 percent or more when purchasing a bank-owned property
• 78 percent of U.S. adults believing there are downsides to buying foreclosed properties compared to 85 percent in May 2009
• The majority of U.S. adults (92 percent) said they would be willing to invest in improvements such as renovations and remodeling if they purchased a foreclosed home
• Renters are showing strong interest in buying foreclosed properties, with 57 percent at least somewhat likely to purchase a foreclosed home in the future