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Distressed Foreclosure Homes to Remain a Major Problem in Washington

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By : John Cutts    99 or more times read
The issue of distressed foreclosure homes is expected to remain a primary concern for various housing markets in Washington State in 2011. According to industry analysts, the number of foreclosed properties will likely remain high this year as the number of homeowners who are delinquent in paying their mortgages has increased in 2010.

Seattle foreclosures recorded some of the highest totals last year in the whole country. However, other areas of the state are also facing foreclosure problems, albeit in a relatively smaller scale than what Seattle is facing. In Whatcom County, one household out of every 101 received a foreclosure-related filing last year. Majority of these households are entering the foreclosure stage for the first time.

Foreclosures in Washington are predicted to remain much the same as the previous year and might even increase in areas like Whatcom, where delinquency rates have escalated. For 2010, data showed that as of October, 4% of all mortgages in the county are more than three months delinquent. The figure represents a huge jump from the 2.1% recorded in January of 2009. If these delinquent borrowers and those homeowners who received their first filing last year failed to make their loans current, more properties will be added to the foreclosure inventory of the area, realtors have reported.

Most market analysts are concerned that majority of these troubled borrowers will not be able to cope, mainly because majority of them have lost their jobs. They stated that a further increase in the number of distressed foreclosure homes in the county will further delay any chance of recovery that the area's housing market has.

Whatcom recorded 863 foreclosures last year, increasing from the 849 posted in 2009. Although this is way below the state's foreclosure rate and the number of foreclosure cases posted in metro areas like Seattle, analysts stated that they need to be unloaded to give the housing industry some breathing room and for the area to start recovering.

For 2011, analysts are predicting the same level of distressed foreclosure homes in the county as last year. They also expect more short sale transactions in the area as lenders try to unload as much as they can of the excess supplies of low-priced houses in their books.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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