Real Estate Pro Articles

Loan Delinquencies Caused Bank Foreclosure Listings to Expand

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
Real estate analysts in the U.S. expect bank foreclosure listings to continue to expand in 2010 and for the foreclosure crisis to remain much like 2009 conditions. According to yearly figures, 2009 produced a record period in terms of foreclosure activities.

A record-breaking 2.8 million real estate properties with mortgages received foreclosure notices in 2009. This translates to a rise of more than twenty percent compared with 2008 and a 120% rise when compared with 2007 numbers.

The staggering number of distressed houses for sale was recorded last year despite the launch of a number of programs designed to control foreclosure rates. Delays in processing loans also failed to lower the number of foreclosure activities during the period.

According to real estate analysts, most of the programs designed to fix loan problems failed to endure, leading to at least three million foreclosure filings in the start of 2010. Foreclosure filings include bank repossession, auction sale and default notices.

Loan default statistics brought in significant declines in housing prices, creating opportunities for people who are into buying bank owned homes. However, the recession prevented most investors and home buyers from taking advantage of these opportunities.

Industry experts have explained that private and government efforts to change loan terms for troubled borrowers failed to sustain or were implemented too late to prevent bank foreclosure listings from expanding and foreclosure rates from declining. These programs, analysts have stated, failed to provide a permanent solution to foreclosure problems.

Real property experts are predicting that unless lenders achieve reductions in their principal balance, the country will continue to see high rates of loan re-defaults and will continue to find cheap homes in 2010.

As the unemployment rate reaches the ten-percent mark, more homeowners are expected to find it difficult to pay their mortgage loans on time. Refinancing will also be a limited option as a large percentage of U.S. homeowners have seen the value of their properties decline to a point where they are worth less than the mortgage that homeowners are required to pay.

The number of foreclosures related to unemployment is expected to continue to rise and bank foreclosure listings are also expected to expand in 2010. Property market experts stated that this will hold true until unemployment rates are brought down to a manageable level.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

Related Articles

Print This Article
Add To Favorites




© All rights reserved to Real Estate Pro Articles