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Foreclosures Set To Rise In 2011



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By : Karim El Sheikh    99 or more times read
Many people are trying to focus on the future of the foreclosure rate. This is important to people in several different industries as the number of foreclosures gives valuable insight on the banking industry and the state of employment, as well as being of interest to those of you who may be looking into buying foreclosed property. If you’re in the market for this variety of new property, you’re in luck. The current forecast is that the foreclosure rate won’t slow down in 2011, in fact, it’s set to rise.

Housing industry experts have predicted that foreclosures in America will rise by 20% in 2011. Banks will continue to repossess large numbers of houses during this period, so those of you who are hoping to take advantage of bank foreclosures in 2011 should have no shortage of options to choose from.

However, while this might not seem like a good thing, many housing industry experts say that the peak in 2011 is a good sign for the economy in general, since when foreclosures reach their peak, that means that the rate of home repossession will start to fall afterward. The foreclosure rate rose by 2% from 2009 to 2010, and while experts are unsure as to what the ultimate percentage climb will be, it’s likely to be at least a percentage point above last year’s rise.

Also affecting the foreclosure rates of 2011 is the temporary hold on selling foreclosed properties that occurred during the last months of 2010. Housing data from 2010 shows that nearly 2.9 million houses were held in default by the end of 2010, and the number would have been higher if not for the hold.

The nationwide unemployment rate still hovers at 9%, which is lower than it has been in the recent past. Unemployed people have a difficult time paying their mortgages, even with the help of unemployment payments and mortgage modifications offered by lending institutions to those who are having a difficult time making ends meet.

In addition to unemployment, the overall cost of homes has dropped a whopping 30% from the peak in 2006, adding to the number of people stuck with what’s known as an “inverse mortgage,” where the mortgage the homeowners are paying off is a steeper debt than the current worth of the house. This is a major problem for people who have invested in large homes with even larger mortgages.

With housing experts forecasting that this year will be the peak year for foreclosed houses and low home prices, this is the time to buy. If you wait too long, the housing market could potentially pick up again and the rates of foreclosure could lower, ending an era of a buyer’s market that changed real estate in this country.
BankForeclosures.com is the premier source for searching bank foreclosures nationwide. Search homes 30-50% below market value.

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