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Foreclosures are Rise Larger than Expected


Friday, February 19th, 2010

Unless you have been living under a rock the last couple of years, it is no surprise that the overall amounts of foreclosures have been skyrocketing. In many of the once "hot" markets of a few years ago, such as: Miami; this can be seen by the simple orange sticker that is easily visible on a number of different properties.  This is because the overall levels of unemployment from the economic recession, has meant that many homeowners simply can not afford to pay their mortgage. As a result, the overall numbers of foreclosures have been skyrocketing. Recent evidence to confirm this occurred when Mortgage Bankers Association said that foreclosure rose a total of 5.09%; with the report showing that a record number of Americans are on the brink of losing their homes. This comes despite the fact that the incentives for first time homebuyers will be expiring on July 1st.

What this shows; is that the real estate markets will not be turning around in 2010 or 2011. Instead, what will more than likely happen is a rise in the number of foreclosure. Then, when the unemployment rate begins to come down; is when the number of unsold homes will decline. As more consumers have more money to make large purchases such as: homes. For investors who are looking for bargains in some of the more expensive areas of the country; the current situation presents an ideal opportunity to pick up various properties for pennies on the dollar.

Foreclosures, Mortgage Bankers Association, Rate of Foreclosures, Foreclosue Assistance

 



Article by Chris Seabury

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com