Threat of Foreclosures Expected to Increase in 2009
RealtyTrac’s 2009 initial foreclosure listings data showed a 30 percent increase in the number of homeowners facing the threat of foreclosures, prompting experts to predict longer foreclosure listings this year.
The increase in foreclosed homes filings was noted despite the moratorium on foreclosures implemented by several major mortgage servicers in 2008 such as JPMorgan Chase, Citigroup, Bank of America and Morgan Stanley and by government-sponsored enterprises of Federal Home Loan Mortgage Corp. and Federal National Mortgage Association.
The moratorium on foreclosed homes was initiated in advance of the plan of President Barack Obama to prevent the flood of foreclosures in the country.
Nationwide data showed that about 291,000 homeowners received foreclosure-related notice in February this year, an increase of 6 percent from the previous month.
A longer foreclosure listings is noted in Florida and Western states. However, the problem is quickly spreading to states of Illinois, Oregon and Idaho as the country’s economy also continues to dip.
ReatyTrac Vice President Rick Sharga pointed out that the continuing increase in the number of foreclosed homes is not doing well for the languishing housing market.
A significant increase in the number of foreclosure properties were noted in New York and Florida’s foreclosure listings following the lifting of the temporary ban on foreclosures.
According to Sharga, banks decided to postpone placing properties in foreclosure listings sale as the country continues to be inundated with distressed properties.
The previous year ended with nearly 700,000 properties in foreclosure listings, dragging the housing market further into a very perilous situation.
Experts believed that if the number of unsold homes in foreclosure listings continues to increase to an unprecedented level, it would spell doom to the housing market and the country’s economy.
Meanwhile, the current foreclosure crisis remains a challenge to President Barack Obama and his administration’s economic advisers.
Obama plans to help almost 9 million distressed homeowners remain in their properties through refinancing or loan modification to reduce monthly payments.
About 12 percent or 5.4 million borrowers were a month delayed in their mortgage payments or in the brink of foreclosure in 2008.
Experts believed that the foreclosure crisis will remain unabated if unemployment will not be addressed and the economy continues to languish on its current abysmal state.
Related Posts:
- Relief from Tax Foreclosure Property Listings
- Record High Repo Homes Listings in Dallas-Fort Worth
- Obama Accused Bush of not taking Actions against Foreclosures
- Homes in Tax Foreclosure Property Listings Attract Crime
- Glut of Bank Foreclosure Properties Expected in Nevada
