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Foreclosures may depict Mixed Response in the Coming Year



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By : Scott Zahid    99 or more times read
Year 2011, as of now does not seem to bring any positive development for the foreclosure market. By the fall of 2010, the housing market has been infected with several issues, which may carry forward in 2011. The documentation issue and seizures across the country has caused delays in processing delinquent houses within a stipulated time. In addition, numerous court judges and attorneys have predicted that the judicial investigations may take at least two to three months to complete the colossal number of pending cases. To add to this burden, new cases are piled up every day.

According to a report, the combined number of pending and new foreclosure cases would mount up to 1.2 million in 2011, an increase from 900,000 properties that were repossessed by the bank in 2010. A survey was conducted on what an average American thinks about the recovery of the housing market. At least 58 percent of Americans think it will recover by 2012 and 22 percent think it will bounce back only by 2015.

Other problems that could deter the foreclosure market to recover in 2011 are interest rates on adjustable rate mortgages that are expected to rise in the coming year and could probably pinch slightly on the homeowners pockets as they may have to shell out a bit more. Additionally, there is unwillingness in buyers to purchase foreclosure properties due to uncertainty related to new process and strict underwriting mortgage regulations, potential loss of future value of delinquent property, and hidden costs involved in buying these properties. Factors like unemployment are also expected to deteriorate the condition of Real Estate market in 2011.

According to a chief executive of a loss mitigation provider, the foreclosure market in 2011 looks grim, programs like HAMP and other modification program are not yielding the desired result and they may not help eradicate the problem from the root. Only flourishing economy and improved employment will help keep the homeowners in their houses.

Conversely, a survey showed that at least 49 percent of Americans across the country are likely to purchase houses that were closed on due to delinquency. Even number of homeowners defaulting on monthly payments has reduced; it is just the overwhelming number of foreclosure backlogs that is required to be cleared quickly to get the market on track.
Original Post: http://www.mostlyforeclosures.com/blog/foreclosures-mixed-response.html on MostlyForeclosures.com, your source of foreclosure listing.

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