169,287 New Listings - March 2010 - Last update March 13, 2010 6:15 AM ESTAnother 3 million Homes Will be Lost to Foreclosure
The US economy is on a tailspin what with unemployment at its peak. As people lose jobs even those with sound credit history are faltering on mortgage payments. Hence, foreclosures have become common. RealtyTrac has pointed out that another 3 million homes will be lost to foreclosure. That would be triggered off by rising unemployment and depressed home values. In 2009, foreclosures were at a record high of 2.82 million. It was the highest ever since RealtyTrac started keeping the data five years ago. This year the number of filings is expected to touch 4.5 million.
The number will reach its peak in 2010. The main triggers will be unemployment and home prices. Home prices have stabilized at levels which are far below the mortgage amounts. This was revealed by the chairman of the University of California’s Fisher Center for Real Estate and Urban Economics, Kenneth Rosen. What is plaguing economists is the negative equity of homes in regions of California, Arizona, and Nevada. In these areas, most homes are under water, meaning people owe more on their homes than what they are worth.
Experts are saying this is the worst crisis that the country has seen since the Great Depression. The rate of unemployment was 10 per cent last year. The rate was same in November. The underemployment rate – comprising workers who have given up job search and those employed on a part-time basis – has also increased to 17.3 per cent. It was earlier tagged at 17.2 per cent.
It may also be pointed out that the lenders in the US have modified 31,382 mortgages. This is only 1 per cent of the targeted figure of 4 million. About 50 per cent of the 3.2 million house owners are eligible for loan relief. This was revealed by the assistant secretary for financial stability, Herb Allison.
Experts are of the opinion that the government should put in more concerted effort to save the housing industry. They say that the loan modification program is “destined to fail” as it does not address the problem of negative equity that is the main driver of foreclosures. Homeowners whose houses are under water will never have the incentive of paying their loan. They will “strategically default.” However, the Treasury Department statistics reveal that above 728,000 homeowners will receive reduction of monthly payments of $550. That will definitely give these hassled homeowners “a second chance to stay in their homes.”
- New Jersey Reo Properties
- Mississippi Reo Properties
- Louisiana Reo Properties
- Idaho Reo Properties
- Colorado Reo Properties
Search REO Homes by States
If you liked that post, then try these...
Utah – The New Foreclosure Capital of USA by neha on August 21st, 2008
Utah is the new foreclosure capital of USA as per numbers rolling in, in July.
Foreclosure Pace Has Increased in Affluent Towns by neha on November 25th, 2009
.
There Can Be No Solution to the Financial Crisis Without Tackling Foreclosure Rates by neha on July 22nd, 2009
.
Fall in Union Membership of Black Workers Led to Many Succumbing to Foreclosures by neha on March 2nd, 2009
The Black workforce was mainly concentrated in the manufacturing sector since the close of World War II.
Foreclosing Are Closing Down Many Familial Relationships by neha on September 10th, 2009
.
