Real Estate Pro Articles

Filings for Bank Foreclosures May Rise Further in 2011

[Valid RSS feed]  Category Rss Feed -
By : John Cutts    99 or more times read
Housing industry experts have predicted that the number of households that will receive foreclosure filings will rise by around 20% in 2011. According to them, the peak of the industry crisis will happen during the year as job losses continue to pile up in most areas of the U.S. and bank foreclosures continue to surge. They also stated that banks will continue to repossess a big number of properties during the period.

A number of industry analysts are expecting bank and government foreclosures to peak during the year, while prices of homes bottom out. According to them, this is what is expected for the year and although Americans will not feel good about the whole process, this is what the country needs to be able to start recovering. Housing data for 2010 showed that properties totaling 2.87 million received default, auction and repossession notices during the period, representing a 2% rise from 2009.

The number, analysts stated, would have reached the three million mark if not for the temporary hold on the sale of foreclosed properties and house repossessions for sale during the last quarter of 2010. Although foreclosure filings for December 2010 declined by 26% compared with year-ago levels due to the nationwide moratorium, the year-end figure still reached record levels.

Analysts also explained that bank foreclosures and the 9% nationwide unemployment rate depressed housing prices in 2010. Home prices, according to analysts, have dropped by as much as over 30% since the peak recorded in 2006. In terms of bank foreclosures and repossessions, lenders seized over one million residential properties in 2010, representing a 14% jump from year-ago levels.

Since the start of the housing industry crisis, an estimated three million houses have already been repossessed by banks. This total is expected to rise to as high as six million by 2013 as analysts expect the market to absorb a big chunk of distressed real estate and homes that fail to sell at property auction.

Housing market experts have explained that the predicted surge in bank foreclosures in 2011 is mainly based on the fact that around five million households are currently holding delinquent mortgages that have yet to enter the foreclosure category. They stated that these delinquent loans will eventually hit the foreclosure pipeline.
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