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. Since last year, there was a 25 percent increase in repossessions.
Repossessions raise
The number of repossessions has shot through the roof since 2009. Repossessed properties are happening at a greater rate than ever before, according to RealtyTrac. The number of repossessions in August 2010 was up to 95,364, as outlined by Bloomberg. RealtyTrac has never recorded that large a number of repossessed residences in its existence. The number keeps increasing. That is lots of people that have to discover a new home. Since August of 2009, repossessions increased 25 percent.
Non-payments and property foreclosures recorded
Don’t despair entirely. There is good news. Since July, foreclosures decreased. So did notices of default. That being said, there is a difference between foreclosures and repossessions. Property foreclosures are part of a legal proceeding. Banks have to serve notice and fill out lots of paperwork. A homeowner in default, if the home gets sold, is responsible for making up the difference in purchase price, should the home be sold for a loss. Repossessions are just when the bank or finance company kicks a delinquent homeowner out however doesn’t start any legal proceedings, and just resell the home.
Foreclosure supply increasing
There is an incredible stockpile of accessible properties, some at discount prices.
You cannot buy a house with a cash advance. But if you can get the financing, you are able to make a killing. As it stands today, one in each and every 381 residences in America has received a property foreclosure notice.
Bloomberg
bloomberg.com/news/2010-09-16/bank-seizures-of-u-s-homes-reach-record-for-the-third-time-in-five-months.html
