subject: Foreclosures Still A Major Force [print this page] Experts Say Housing Recovery Still a Long Way Away.
If youre hearing news that the real estate market is coming back and that foreclosures are going away, youre hearing from people who arent really looking at the facts.
And here are some of those not-very-encouraging facts:
60 Minutes on their May 10th broadcast did a story on homeowners prepared to walk away from their mortgages because they owe more than the house is worth.
On May 11th, J.P. MorganChase warned investors that more and more homeowners are likely to walk away from their mortgages.
Banks and other mortgage holders are increasingly not paying attention to homeowners who are behind on their mortgages, according to RealtyTrac. Theyre falling further and further behind with no chance of catching up.
At the moment, there are over 6 million mortgages in default or in the final stages of foreclosure a staggering figure.
Homeowners who have been successful in modifying their home loans are quickly falling back in default and the failure rate is expected to be around 50%.
Now that tax credits for homebuyers have expired, many experts expect to see a double dip in home sales in the last half of the 2010 which will drive down prices and cause more underwater homeowners.
Mortgage rates are also expected to rise, now that the Federal Reserve is exiting the home loan market
More than 2/3rds of all home sales in Orlando, Florida were distressed properties (REO homes and short sales) in April of this year. REO property prices actually rose due to the demand for REO listings.
The so-called shadow inventory of REO homes that have yet to hit the market an inventory that numbers in the millions is expected to peak later this year.
Rental rates continue to fall, indicating continued softness in the real estate market.
The number of foreclosures held by Fannie Mae nearly doubled in the first quarter of 2010 from 2009. They currently hold over 11 billion dollars worth of single-family home foreclosures.
Unfortunately, the facts definitely do not point to a housing recovery any time soon. If anything, the increasing number of REO homes that will reach the market in the coming months will boost demand for REO properties and drive down all other real estate values.
That means REO homes will continue to be available in abundance, will continue to be seen as the best value to potential homebuyers and will continue to dominate home sales for months and years to come.
Training to become an REO agent and learning how to get REO listings will also continue to be a great career choice.
