Some good news would be good about real estate, however it’s not happening anytime soon. Sales were briefly up, but it was artificially propped up by the tax credit. A few more people were successful in the loan refinancing program from the government. Of course, property foreclosure rates have slowed, but it hasn’t impacted how many financial institution loans keep getting paid on. Home repossessions have shot into the stratosphere. Since last year, there was a 25 percent increase in repossessions.
Repossessions increase
Repossessions are steadily increasing. Since 2009, they have exploded. RealtyTrac, a mortgage brokerage, keeps track of these trends. RealtyTrac just released a report wherein it is revealed that repossession of residences is at the highest level ever. There were a lot of them in August, as outlined by Bloomberg. There were 95,364 people whose homes were repossessed. RealtyTrac has not yet documented numbers that bad. That is a lot of individuals thrown out of lots of houses. It was only an increase of a few percent since July. Nevertheless, it is a 25 percent increase since August 2009.
House foreclosures down
However, there is some good news. Overall foreclosure and default notices decreased by 5 percent since July of this year. Take that with a grain of salt, though. Repossession and foreclosures are a bit different. There is a whole lawful process that has to be followed for foreclosures. There are also further obligations to the borrower. If the home is resold at a loss, the borrower has to make up the main difference. Repossessed properties are different. You will find less lawful hang ups, and much less paperwork. The homeowner is simply kicked out and the home is resold.
Foreclosure inventory increasing
There is an incredible stockpile of accessible homes, some at discount prices.
You cannot purchase a house with a money advance. But if you are able to get the financing, you are able to make a killing. Currently, 1 in 381 residences is in foreclosure.
Further reading
Bloomberg
bloomberg.com/news/2010-09-16/bank-seizures-of-u-s-homes-reach-record-for-the-third-time-in-five-months.html
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