Increasing Foreclosures
Year 2010 Hit a Record Level in Foreclosure Activity, 2011 Could Be Bigger
Year 2010 registered a record 2.9 million homes that suffered from foreclosures. The figure is a consolidated total of bank repossession, auctions and foreclosure filings. This depicts that one in every 45 properties in America received a foreclosure notice. The figures could have been higher if the housing market was not hit by the “robo-signing” fiasco.
The issue caused lenders to impose freeze on seriously delinquent homes for some time, which delayed some processes and created a huge backlog inventory. This inventory will be added to the 2011 numbers. The year has just started and experts predict foreclosure statistics could go up drastically. Current data shows about five million borrowers are in default of two months or more on their loan payments.
Banks estimate they would repossess at least over a million delinquent houses in this year. Reason for such increase in figures is partly attributable to the “robo-signing” debacle. Apart from that, unemployment is considered as major factor contributing to default in mortgage payments and, in turn, to foreclosures.
Although the economic downturn has seen an upward turn, the housing market is still in deep waters. Since start of 2010, the lenders were blamed for negligence, fraud, “robo-signing and other scams which are believed to have led to an increase in foreclosed homes. Many believe that several foreclosures that occurred during this time were incorrectly closed on.
However, state of Ohio tells a different story. A recent report mentioned that increasing foreclosure rate in Ohio is attributable to rising unemployment numbers in the state rather than lender scandals and laxity. The unemployment rate in Ohio was eleven percent higher than 2009.
Foreclosure activities and frauds itself added to numbers of unemployment. Only last three months of year 2010 saw a decline in foreclosure rate. Nevertheless, many point to lenders for rising foreclosure issues. Even though numbers of foreclosure were less in the last two months compared to year 2009, the annual figures are higher than year earlier.
To tackle the issue, alternatives like short sales are being encouraged over prevention programs like Home Affordable Modification Program. In areas like Alabama Gulf Coast, fifty percent of house sales consist offoreclosed houses or houses sold via short sales.
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Original post: http://www.e-foreclosuresearch.com/blog/year-2010-hit-a-record-level-in-foreclosure-activity-2011-could-be-bigger/ on E-ForeclosureSearch.com, your source of a bank foreclosure listings.
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RAPIDLY RISING DEFAULTS.(Business)(Foreclosures in Lane County increasing faster than Oregon and the nation): An article from: The Register-Guard (Eugene, OR) $9.95 This digital document is an article from The Register-Guard (Eugene, OR), published by Thomson Gale on October 6, 2007. The length of the article is 1565 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTi… |
