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Big Surge in Indianapolis Foreclosed Homes Stirs Concern



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By : John Cutts    99 or more times read
A big surge in number of Indianapolis foreclosed homes is feared by officials in the metro area and in the state of Indiana as the pace of mortgage defaults and foreclosure has been rising over the first months of the year.

According to a real estate consultancy firm, the number of mortgage loans in Indianapolis and all other parts of Indiana that became delinquent by three months or more has jumped up in January this year to its highest point in more than 12 months.

The number of residential units that became bank-owned foreclosed homes for sale in Indiana in February was still high at 1,514 units, equivalent to a high 35 percent of all foreclosures filed statewide in February. Despite a slowdown in pace of statewide foreclosure activity, there were still almost 4,400 village properties and other types of housing units that were notified they are already delinquent or foreclosed in February.

In February, according to a property market research firm, over 1,500 residential units in the ten-county Indianapolis metropolitan area were given notices of delinquency and foreclosure. The number of Indianapolis foreclosed homes is expected by analysts to jump up because of the high mortgage delinquency rate in the metro area. Almost eight percent of all residential mortgage loans in the area have become delinquent by 3 months or more.

According to analysts, despite earlier positive outlook for Indianapolis, the high number of workers who lost their jobs and failed to find new jobs may block earlier signs of recovery to prosper. The surplus in available housing units and the still high number of distressed properties are additional burdens weighing down on the Indianapolis housing market.

Local realtors even fear that the rise in number of lower-priced properties may push down prices further down, although improved home affordability has been encouraging local buyers and out-of-state investors to buy properties in the area.

Federal foreclosure programs like the Hope Now program and bank efforts like the Chase loan modification initiative have not succeeded in stopping foreclosure activity. Chase has increased the number of its employees focusing on loan modification and has intensified its efforts in Indiana, but not many are getting qualified for the bank modification scheme because of unemployment.

According to one of the biggest real estate businesses in the area, Indianapolis foreclosed homes and other distressed properties accounted for nearly 30 percent of all residential sales last year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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