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Measures in Preventing Foreclosure Suffer Along with Sales

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By : John Cutts    99 or more times read
To help the housing market recover, the U.S. federal government has launched several programs for preventing foreclosure. However, such programs are not enough to promote a sustained recovery. Existing foreclosures should also be sold and unloaded off the market to improve the industry's condition. In northern Indiana, sales of existing residences, including foreclosed homes, declined in October which effectively hindered the area's housing industry recovery.

Sales of foreclosed homes in Fort Wayne, IN and other existing residential properties in the northern part of the state fell by 34% in October of this year compared with the same month of 2009. Local realtors have reported that a total of 438 houses were sold in October compared with the 661 sold in the same month of last year. However, prices of existing dwellings did improve when compared with year-ago levels.

Indiana foreclosures and other existing residences sold for an average of $112,721 between January and October 2010. This rate represents a 4.5% improvement when compared with the same 10-month period of 2009. Meanwhile, closed sales for October for the whole state totaled 4,211. The number is 32.8% lower than the 6,265 homes sold in October 2009.

Statewide housing sales for the January-October 2010 period also declined by 3.9%, with current year's number pegged at 49,616, while 51,652 housing units were sold in last year's 10-month period. Federal government-supported programs for preventing foreclosure have also had a minimal effect on the number of foreclosed properties in the area, with foreclosures and distressed homes continuously flooding the market.

According to state housing experts, the decline in USA foreclosure homes sales is mainly due to lack of consumer confidence brought about by unemployment and a change in administrative leadership. The foreclosure moratorium imposed by major lenders all around the country also contributed to the decline in sales, experts have stated. They asserted that buyers have become more wary when it comes to purchasing existing homes following allegations that processing of these properties was not done properly.

Although programs for preventing foreclosure hardly made an impact on the state's foreclosed property supplies, local realtors are optimistic that the area's housing industry will start recovering next year. Their optimistic prediction is based largely on the rise of housing prices in Indiana.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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