Foreclosures will hit the 1 million mark by end of 2008
Posted on September 22, 2008
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According to studies more than 100,000 homeowners have lost their properties in August. This is more than 80% of what people lost in August 2007. The main states that have been driving up the foreclosure data are the states of California and Florida. Lenders and banks have foreclosed more than 650,000 properties till date this year with the figure likely to touch a million homes that are going to be foreclosed by the year end. It has been also reported that 8.6 houses out of 1000 have been foreclosed. Till date 1.45 million homeowners have lost their homes and this is double the number of last year.
All pre-foreclosure actions by the lenders won’t necessarily end up in foreclosure and July has seen some slackening in the actions of pre-foreclosures by lenders. Some of the states that have seen the slackening are also California, Florida and Arizona. Even the Mortgage Banker’s Association or MBA as it’s more commonly known has announced the mortgage delinquency rates as well as the foreclosure rates. These reports have shown that 6.41% of mortgage loans became delinquent in the second quarter of this year. It has also show that 2.75% of the mortgage loans that are given are also in stage of the foreclosure procedure.
Foreclosure rates across the country
According to the reports the country’s Midwest and Northeast has seen somewhat lower action in foreclosure rates this year as compared to the previous years. The experts say that the overall situation wouldn’t be really bad in spite of the unemployment rate at 6.1% and a large number of foreclosures that have happened through august. This is quite a reason for cheer. In contrast the Southwest region of the country has reported the maximum number of foreclosures till date that stand at348, 019 or 12.7 per 1000 households. But it’s the Southeast that has led the country in the pre- foreclosures with 477,177 or 27.5 filings per 1000 households. This is nearly double the rate of Southwest.
This is the right time to buy the property with professional help
Investors and first time buyers can find excellent opportunities in these foreclosed properties. But they need to be extremely prudent and look at the property before actually buying it. Those that are considering buying these properties at the pre-foreclosure, auctions and other REO should look at the physical condition of the house. They should get professional inspectors to check out the house and take the help of realtors who can help them to buy the properties. While the home may look like a steal at the price, it might have a number of hidden problems and the repairs may suck away the savings that you were intending to make.
Some economy boosting statistics
The economic scenario is beginning to slowly look up as the existing homes sales have picked up and climbed to 3.1% in July, that’s the highest since the past 5 months. The US GDP has also climbed in the second quarter to 3.3%. During this worst case scenario only 10 of 8451 FDIC insured institutions have failed. That’s $40 million assets out of $13.3 trillion assets under these institutions.
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