Report has it that filing of foreclosures in the U.S. increased by over 81% last year. It was up by 225% if compared to the foreclosure rate recorded in 2006.
A year-end report released by RealtyTrac stated that 861,664 households have filed for foreclosure in the year 2008, and over 3.1 million filings were issued. It shows that 1 out of 54 families have been sent a written notice last year.
RealtyTrac CEO James Saccacio said that all foreclosure programs being implemented did not have any luck in reducing the growing number of foreclosures.
As everybody can see, lenders, banks and the government made a huge effort to put an end to the home crisis, but the number of defaults still increased until the end of last year. Foreclosures went up by 17 percent from November to December, and were up by 41 percent if compared to December 2007.
Saccacio said that the increase in foreclosure was a bit surprising, mainly because Fannie Mae and Freddie Mac have implemented a delay in payments, but there was still no improvement in terms of the foreclosure status.
The said postponement started on the 26th of November last year and would be until the 31st of January of this year.
RealtyTrac Spokesman Rick Sharga said that foreclosures will never decrease sooner than everyone has expected, and that he does not have an idea how people can prevent 3 million foreclosures this year.
In addition, banks are slowing the process in foreclosure, probably due to manpower shortage, thus resulting in the increasing number of defaults.
Further, if foreclosures increase, then home costs decrease. In fact, S&P/Case-Shiller Home Price Index reported that house costs fell down to over 21 percent.
Deteriorating home costs make homeowners behind on mortgages, thus making them owe more money than the worth of their house.
Mortgage Bankers Association Chief Economist Jay Brinkman and Sharga both agreed that these factors make foreclosures continuously increase every year.
Author Resource:-
Leticia Carvalho has been educated in the finer points of the foreclosures market over 5 years. Read about the following article Foreclosures Went Up To 81% Last Year by Leticia Carvalho on Foreclosure-Support.com - Your online source for foreclosed homes for sale.
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