Foreclosures Hit a Bad Record in 2009

Foreclosures Hit a Bad Record in 2009

Foreclosures Hit a Bad Record in 2009

Last year, an incredible number of homeowners 2.8 million was threatened by possible foreclosure of their properties, and this year, that number is expected to rise, as more and more people are suffering from unemployment and homeowners are unable to pay their mortgages.

The number of houses that received foreclosure notices increase by 21 percent from the previous year, according to a report by a Real Estate foreclosures services provider. One in 45 households receive something related to foreclosure, which may be a notification, auctions and repossessions.

In December, around 349,000 houses, or one in every 366 households, were given a notice that is related to foreclosure. This represents a whopping 14 percent increase from November, and an even higher increase in December at 15 percent.

Banks repossessed around 92,000 homes, an increase by 19 percent from November. This was probably because of the lenders who were working hard to clear their books by the end of the year.

Stemming the foreclosures tide is one of the most important steps that the Real Estate sector and the economy can take to recover. Because foreclosed properties are more likely to be sold at a discounted price, properties will most likely see a decrease in prices. Cities lose dollars worth of property tax due to empty foreclosures, as well as the decreasing values of homes. This continues to strain local economies. And even though the price of houses stabilized in several cities, the national statistics still indicate that it is down by 30 percent, from the middle of 2006.

The high number of foreclosures has forced the government, both at the federal and state levels, to devise plans to help borrowers who are in trouble. One of the major plans that the Obama administration launched, the Making Home Affordable program, has already helped homeowners to ease into the crisis. Through loan modification programs by lenders, some homeowners were able to keep up with their monthly payments.

POST COMMENT

Bad Boys Of Foreclosures Weak Economy and Increasing Foreclosures Foreclosure - The Judiciary Can No Longer Turn a Blind Eye Short sale foreclosure Steps to follow to stop foreclosure Foreclosures high in Southwest and North Counties The Ease of Owning BofA Foreclosures Locating The Finest Foreclosures In Florida Effective Ways to Stop Foreclosure Sale Foreclosures are a lot harder to come by Flipping Foreclosures In Fort Wayne What You Can Do To Stop Miami Foreclosures What To Do To Buy After A Foreclosure