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Rising Foreclosures Statistics Cause Homeownership Rate to Decline

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By : Clark Raitz    99 or more times read
Housing industry experts have reported that the escalating foreclosures statistics all over the U.S. are giving potential home buyers pause and causing the nation’s homeownership rate to remain at its lowest level for the whole decade. Based on housing reports, homeownership rate in the country was at 66.9% during the third quarter of 2010.

Despite the low priced residential properties on offer, including Los Angeles HUD houses and other cheap residential properties here in California, most buyers are not seeing enough reason to invest in homeownership. According to the U.S. Census Bureau, the 2010 third quarter rate equals the previous quarter’s level, with both quarters recording the lowest homeownership rate in the country since 1999.

Rate of homeowner vacancy also remained the same in the third quarter compared with the second quarter at 2.5%. This includes vacant homes and empty dwellings that are up for sale. The number of residential properties unsold and vacant further increased in the July-September 2010 period when compared with year-ago levels as lenders repossessed a record-setting 288,345 residential properties. Compared with the 2009 third quarter, total repossession is up by 22%.

Foreclosures statistics showed that majority of repossessed and foreclosed homes, including Los Angeles HUD foreclosures, are on the market without owner or buyer. Despite being offered at very low prices, demand for these properties has remained weak, mainly because of the poor condition of the country’s economy and Americans’ fear of unemployment.

During July-September 2010, a total of 18.8 million homes were vacant, including foreclosed dwellings, houses up for sale and vacation residences. This number is a bit lower than the second quarter when a total of 18.9 million residences were vacant. Meanwhile, houses that were unoccupied due to renovation or because of legal proceedings totaled around 3.6 million in the third quarter.

Analysts have stated that the federal government’s loan modification program hardly made a dent on the huge amount of foreclosures sitting in the U.S. housing market. The government-supported mortgage modification effort was able to permanently modify a total of 466,798 mortgages since its inception in March 2009 until the third quarter of 2010. This number, housing analysts have stated, is hardly enough to prevent foreclosures statistics from expanding.
Original Post: on, your source of foreclosure properties.

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