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Once Again Surge in the Bank Foreclosure Listings Can Be Noticed Across the Nation



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By : Julie Thompson    99 or more times read
According to data from Barclays Capital, there is an increase in the number of filings for properties under bank foreclosure listings. Compared to December’s 617,286 foreclosure hit properties, this year in January marked a 4.6 percent jump to 645,800 units that came under foreclosed property listings both in the listings of investors and banks.

According to Barclays, the number of foreclosed homes and condos reached its highest level in November 2008 to almost 845,000 units, and afterwards, it observed a continuous fall throughout 2009. With the federal mitigation program and many other steps like modification in home loans etc., and schemes to prevent further foreclosure of homes, this had lowered the number of real estate owned homes in 2009 over 2008, although there were continuous filings for foreclosure in 2009.

A quick demand for these cheap fixer upper homes and other bank owned properties among the first time buyers had cut short bank owned properties listings. The scheduled period of the federal tax credit expiration pushed the purchases of these nondistressed and foreclosure homes last year. With homes that were not eligible for foreclosure prevention options and federal loan modification programs, banks are now pursuing those foreclosure homes for their mortgages. This is the reason for the increase in the number of bank owned property listings this year.

Barclays analysts speculated that the number of properties that were in bank foreclosure listings would increase reaching the highest level of almost 733,000 household units in April, and after that it will gradually decrease again. Moreover, a slowdown in the home sales in the recent times will add more real estate properties in the Banks’ REO books. The listings of home sales across the country are comprised of 20 percent foreclosure properties.

The employment creation and improvement in the economic situation that will increase the purchasing power of people and mortgage payments, will largely decide the rate of foreclosure in the future months. The pace of foreclosure will also depend on the additional effort to save more distressed homeowners who will come under the loan modification program.

According to research conducted by Barclays using the figures from mortgage securities investments, they estimated that among bank owned property foreclosures, around 8 million homeowners or almost 15 percent of all mortgage holders were already in foreclosure and were defaulters in their home loans. Strong economic conditions are required to improve the conditions of foreclosure situation.
Julie Thompson, has been working on ForeclosureWarehouse.com studying the foreclosures market, helping buyers on the finer points of foreclosure homes.

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