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Foreclosed Bank and VA Homes Continue to Trouble Alabama

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By : John Cutts    99 or more times read
The number of foreclosed properties, including VA homes, remained elevated in Alabama last year. Some local areas of the state performed worse than others in 2010, with several factors contributing to the poor performance of these areas' housing markets.

Montgomery foreclosure homes for sale and distressed houses in other metro areas of Alabama posed considerable problems to the region. This is highly evident, particularly in waterfront areas like Dauphin Island in Mobile. The combination of high number of foreclosures, unemployment and the BP oil spill disaster conspired to make the county one of the foreclosure hotspots in the U.S. last year.

The problem of Alabama foreclosure homes was further aggravated by the oil spill disaster, which made the job market, already tanking before the disaster happened, sink to lower levels. In Dauphin Island, majority of houses, condominiums, vacation homes and waterfront parcels of land have been sold as short sales or are currently in foreclosure. The whole county of Mobile had a foreclosure rate of one household out of every 56 property units last year. The figure represents a 28% rise from 2009 levels.

According to local housing market analysts, the number of foreclosed properties, including foreclosed VA homes, will continue to rise this year and might even top 2010 levels. However, they did report that job creation is picking up, with Austal USA winning a contract that will allow it to build warships for the U.S. Navy. The contract is expected to bring in around 1,000 jobs.

Other companies are also starting to hire again, but analysts admit that the problem of the housing market will require some time to be resolved. Market data showed that nearly 50% of housing sales in Mobile are accounted for by foreclosed houses or short sale transactions. This brings the prices of properties down, and with foreclosure filings expected to rise again this year, analysts are reluctant to predict even a small amount of recovery for the housing market in 2011.

Despite the gloomy assessment, most economists agree that, before the problem of foreclosed bank and VA homes can be solved, the job market should first recover; and with more hiring activities in the past few months, analysts stated that Mobile seemed to be on the right track.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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