Go to Fantasyland if you want good news about real estate. Sales were briefly up, however it was artificially propped up by the tax credit. The government did offer a loan modification program. Nevertheless, the impact was not as much as hoped. Banks can skip foreclosures, and simply repossess residences when owners default on their bank loans. Repossessions increased by 25 percent in the last year.
Rising repossessions
The rate of repossession has become near epidemic since August 2009. Repossessed properties are happening at a greater rate than ever before, according to RealtyTrac. There were a lot of them in August, as outlined by Bloomberg. There were 95,364 individuals whose homes were repossessed. RealtyTrac has never recorded that large a number of repossessed homes in its existence. The numbers of repossessed homes, where a homeowner has to vacate the premises and the loan business tries to resell it, have only increased. Since August 2009, that is an increase of 25 percent.
Home foreclosures lower
Don’t despair entirely. There is good news. Overall foreclosure and default notices decreased by 5 percent since July of this year. Due to the difference between repossessions and home foreclosures, that should be taken with a grain of salt. There is a whole legal process that has to be followed for foreclosures. A homeowner in default, if the home gets sold, is responsible for making up the main difference in purchase price, should the home be sold for a loss. Repossessions are different. There are fewer lawful hang ups, and much less paperwork. The homeowner is simply kicked out and also the home is resold.
More houses awaiting sale
There are a lot of foreclosed houses available at rock bottom prices.
It isn’t as if you are able to buy a home with a small money advance, but if you are able to get the financing, a good home can be acquired at a good price. About 1 in 381 properties is foreclosed on. These are not good numbers.
Additional reading
Bloomberg
bloomberg.com/news/2010-09-16/bank-seizures-of-u-s-homes-reach-record-for-the-third-time-in-five-months.html
