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Job Loss Has Role in Foreclosed Home and Commercial Property Listing

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By : John Cutts    99 or more times read
The number of properties getting foreclosed and ending up in distressed residential and commercial property listing is partly due to job losses happening all around the U.S. According to real estate market analysts, one household out of 10 has failed to pay mortgage in time at least once since the start of the recession.

They also estimate that around two million dwellings, including Seattle home foreclosures, have been lost since the start of the housing market crisis. Most market analysts believe that this problem will not abate until companies start hiring again and employee layoffs diminish in key areas of the country.

In terms of local housing performance, home foreclosures in Washington are at 2.58% compared with the national average of 4.57% for the second quarter of 2010, according to data released by the Mortgage Bankers Association. In terms of foreclosure starts, or those mortgages that are past their due dates but are still not in foreclosure stage, the state has a 0.85% rate for the second quarter.

This percentage is relatively better than the national foreclosure start average of 1.11%, with listings of foreclosure homes expected to expand nationally when statistics for the third quarter become available. Among all the states, Washington is 36th in terms of mortgage delinquencies for the second quarter and 29th in terms of foreclosure starts.

Meanwhile, national housing market statistics showed that the number of foreclosed properties under residential and commercial property listing has kept expanding, causing the prices of properties to decline further and discouraging potential sellers and buyers from getting involved in the real estate market.

This, according to analysts, is a worrisome scenario, particularly in a market where the opposite should be happening since mortgage rates are at an all time low. Thirty-year fixed mortgages have a rate of 4.42% as of August 26, which makes it the lowest rate since Freddie Mac started gathering data on mortgage rates in 1971. Fifteen-year mortgage loans, on the other hand, are currently at 3.86%.

As of the 2010 second quarter, over 2.3 million properties have been repossessed or included in the list of foreclosed residential and commercial property listing beginning in December 2007 when the recession first started. Analysts are estimating that an additional six million properties will be foreclosed all over the country in the coming three years.

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