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Foreclosure and Bankruptcy Repo Homes to Rise Further in 2011

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By : John Cutts    99 or more times read
Housing experts have predicted that the problem of foreclosed and bankruptcy repo homes will be even worse in 2011 than it was last year. They also predicted that lenders will seize more houses this year than the over 1 million dwellings they repossessed in 2010. Most of them stated that 2011 will be the peak of the housing industry crisis.

Last year, Kansas City repo homes and foreclosures in various areas of Missouri continued to rise, although at a much lower degree than the rest of the U.S. However, analysts revealed that the pace by which foreclosure-related activities rise in Missouri and in the neighboring Kansas state was quicker than most regions of the U.S.

The number of households that received notices of default and auction sales notices and the number of Missouri repossessed properties recorded a jump of 19% last year compared with 2009 figures. For neighboring Kansas, the rise was 26%. Despite the increases, both regions recorded lower foreclosure-related activity rates than the national average.

Nationwide, bankruptcy repo homes and foreclosure activities increased by 1.7% last year compared with 2009. In terms of ratio, one household out of every 78 housing units in Missouri was under some phase of foreclosure in 2010 compared with the national average of one household for every 45 residential units. In Kansas, one household out of every 107 dwellings was under some form of foreclosure last year.

For 2011, majority of housing market analysts are predicting that record number of foreclosed and repossessed house properties will enter the market. They also project housing prices in the whole country to decline by another 5% this year before hitting the bottom. This expected drop in prices, analysts stated, will cause more homeowners to hold mortgages that cost more than the values of their properties.

Analysts stated that the grim forecast is mainly based on the persistent rise in unemployment levels and continuous decline in values of real estate. Moreover, housing experts are expecting more foreclosed and bankruptcy repo homes to enter the market, mainly because most homeowners who will seek to refinance their loans will not be able to do so. Tighter lending standards, analysts stated, will be the main reason.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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