Job losses, foreclosed for sale prices and other downturn factors are putting more mortgages into negative equity. Analysts and economists have predicted the number of underwater borrowers to increase in 2010 and in 2011 by significant rates.
Los Angeles foreclosures for sale slowed in October as banks delayed their foreclosure actions on defaulting mortgages. Home prices improved, with the median increasing to $340,000 in October.
The Obama Administration has launched a foreclosure prevention plan to help reduce the flood of foreclosed, cheap houses for sale in the country which has been dragging the housing market to an abysmal situation.
Declining home values largely due to the overwhelming number of properties in foreclosure listings have been putting local tax assessors in a bind-whether or not to consider the foreclosure factor in their estimates.
Standard & Poor's has asked mortgage lenders to submit necessary documentations about their respective foreclosure procedures. The ratings agency said it would downgrade ratings for banks that would not comply with its requirements.
Economists see some positive signs in the slowed down decline of the Standard & Poor’s/Case-Shiller home price index for 20 large cities in February, although home prices in some cities are still battered by foreclosed homes.
Home foreclosures in Denver slowed in 2009 and in January 2010, pushing up house prices. Denver posted the second biggest drop in foreclosure filings among the largest counties in Colorado in January this year.
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