The Number Of Foreclosures Will Rise In 2010

By:


The US economy is in a very crucial phase. The real estate sector has crashed and people are finding it difficult to make mortgage payments. Hence, foreclosures have become common. In fact, in 2009 there were 2.8 million houses which were foreclosed. The number is set to rise in 2010. That is because unemployment levels would rise even higher leaving homeowners cash-strapped.
RealtyTrac said that foreclosure filing notices increased by 21 per cent in 2009 as compared to 2008. At least one out of 45 homes was sent foreclosure notices. Last December, one out of 366 houses was sent notices. That makes it a total of 349,000 homes. That means a 14 per cent increase from November 2008 and a 15 per cent hike from end 2008.

Banks have taken up above 92,000 houses, which is again a 19 per cent jump from November. That increase could be because of lenders wanting to clear the books before year-end. This was revealed by Realty Trac.

Experts agree that it is very important to stop foreclosures, if the realty sector has to recover. That is primarily because foreclosures are always sold at a discount and that has a bad effect on the home prices in the locality. There is a tremendous strain on local economies as property taxes drop and home values decline. However, in a few cities home values have stabilized. Yet they are still down by 30 per cent when compared to 2006 figures.
The senior vice president of RealtyTrac, Rick Sharga says that it will take some time for the foreclosure crisis to ease out. In 2010, around 3.5 million houses will be foreclosed. The Federal government has come up with several plans to help troubled homeowners. The Making Homes Affordable Program is one such plan aimed at stemming foreclosures. As part of this program, loans of homeowners will be modified first on an experimental basis of three months and then permanently.

However, the program started off on a slow pitch and lenders have been able to modify loans of only 760,000 borrowers ever since it had taken off in March. Till November 2009, loans of 31,000 people have been modified. About the same number of people had either dropped out of the program or was found to be ineligible for loan revision.

The primary catalyst for foreclosures would be unemployment. Homeowners who had taken traditional loans are now faltering on loan payments.

About the Author:
Julie Thompson, GM Sales & Marketing, foreclosure1.com

Julie Thompson, has been working on foreclosure1.com studying the foreclosures market, helping buyers on the finer points of foreclosure homes for sale. Try to visit foreclosure1.com and begin your foreclosures by state search.



Article Originally Published On: http://www.articlesnatch.com


Tags: , , , ,

|

Recent Real-Estate Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.