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Bank and Government Tax Foreclosure Properties to Increase in 2011

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By : John Cutts    99 or more times read
Housing industry analysts are expecting the number of foreclosures, including government tax foreclosure properties, to rise further in 2011 in the Pennsylvania metro area of Scranton/Wilkes-Barre/Hazleton. According to them, the rise in the number of borrowers who are at least three months delayed in paying their mortgages in 2010 will result in higher foreclosure numbers this year.

Foreclosed homes in Scranton PA will likely post higher numbers in 2011, analysts have asserted. They stated that this is because one out of every 14 mortgage holders in the region was already behind in loan payments by 90 days or more as of October 2010, the latest statistics available for mortgage borrowing in the state. According to Core Logic, this gives the area a 6.67% delinquency rate for October 2010, representing a 5.4% jump from October 2009, when the rate of delinquency was at 6.33%.

Analysts explained that three-month delinquencies are a good gauge of how many properties will eventually become Pennsylvania foreclosures since these are the mortgages that have the highest risk of defaulting. They also stated that the number of delinquent borrowers will likely increase further as the year progresses since lenders are already working on improving their processes.

Meanwhile, some real estate experts have stated that a big percentage of the delinquency rate for the region is accounted for by last year's overflows. They stated that most of these delinquent loans were from last year's bank foreclosure and government tax foreclosure properties cases that were put on hold due to the moratorium implemented in various areas of the U.S.

Locally, Scranton's foreclosure activity rate and its number of foreclosed homes for sale remain higher than the Pennsylvania average, with the metro area posting a rate of 2.27% last year. In terms of REO numbers, 0.61% of the metro region's properties were repossessed in 2010, higher than the statewide repossession rate of 0.35%.

For the rest of 2011, analysts expect bank foreclosed homes and government tax foreclosure properties to continue to rise in Scranton as cases that were put on hold last year get restarted this year. They added that high delinquency rates among local homeowners will also contribute to the increase in foreclosure numbers this year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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