Foreclosures over the last 2-3 years have been a major issue for most states in the US. While California, Nevada, and some others have been topping the foreclosures by state charts for the highest numbers, others have maintained a low profile. With the start of the year 2009 and the promise of a new government, hopes had been high. However, whether the Obama government has been successful in doing anything concrete or not would only be seen after a couple of quarters. But we can definitely figure out if the new government’s efforts are headed in the right direction or not.
This is what the US foreclosure market report for Q1 of the current year tells:
The total number of foreclosure filings, which is a collective figure of all default notices, notices for auction sale, as well as bank repossessions, amounted to 803,489. This Q1 figure is 9% more than Q4 2008 and 24% increase from quarter one of 2008.
During quarter 1 of 2009, one out of every 159 American houses filed for foreclosure!
As recently as March 2009, the total number of foreclosure filings amounted to 341,180 properties. This amount is a 17% rise from Feb 2009 and 46% rise from the same time previous year. The figures for Q1 and March 2009 have been the highest for both monthly and quarterly data since January 2005, despite the fact that there has been a slowdown in the Bank Repos (REOs). The Bank repo rate has gone down by 13% from Q4 2008 and 3% from February 2009.
Hope can’t be upped just yet. The month of March this year has witnessed a very high amount of foreclosure activity, as more than 12% households from the highest number recorded up to now filed for foreclosure. What makes this situation worse is that the foreclosure action was seen in new loans, suggesting that lenders were waiting to foreclose properties due to delays on part of the government. Additionally, the fall in REO activity is mainly due to processing delays and not because of the implementation of foreclosure prevention schemes, if any at all.
If foreclosure experts are to be believed foreclosures by state numbers are only going to increase. Moreover, the number of bank repossessions are going to increase as moratoria has been removed now.
However, the silver lining to these grey clouds of foreclosure has come in the form of increasing demand, especially in the hard-hit states. More and more buyers are now keen to invest in bank owned foreclosures as these offer excellent bargain opportunities. With increasing foreclosure inventory due to rising numbers of foreclosures by state, the demand from first time homebuyers and genuine investors is likely to offset this trend.
- Hardest Hit States In The U.S. With Home Foreclosures - Home foreclosures have hit a record high in the U.S. Lenders are not able to collect on their loans because of numerous economic issues including high unemployment rate, this has resulted in a shortage of money and jobs.
...
- Real Estate Foreclosures - With the increase in number of properties which are being listed under the real estate foreclosures and so as the number of people who are getting an opportunity to make money and profits because of it. With the increases in properties going for foreclosures, the number of people getting into the real estate business is ...
- Tips To Know About Connecticut Foreclosure - Lessons to learn from Connecticut foreclosure will alert buyers to housing market conditions that are favorable and present in Connecticut (the Constitution state.) Market fundamentals are discussed as well as projections for 2010 and 2011. Supply and demand factors loom large while the internet provides crucial housing and home owner information investors need in order ...
