subject: Foreclosure Freeze hinders US Economy and Housing recovery [print this page] Foreclosure Freeze hinders US Economy and Housing recovery
Reviewing the latest news in the foreclosure crisis we see the housing recovery take a breather as new figures came out on Friday October 29, 2010. According to ForeclosureRadar, a California based real estate tracking company located in Discovery Bay, has released figures stating since Sept 20, 2010 a decrease in foreclosure sales is down to 42%. While in Florida the number of bank owned homes actually selling on the market is down to 18%. As things begin to slow down and the economy still struggling to maintain steam and upward momentum, we certainly will be feeling the effects of the foreclosure crisis for years to come.
Out of the top states that have the highest foreclosure rates, only one state actually monitors the foreclosure process by using the court system. Florida specifically has seen lenders pull bank owned properties off the market and re sales of foreclosed homes have stalled in the process of going to closing. One out of every 56 home in the state has received a foreclosure notice. With the foreclosure freeze and the investigation of the Federal Government harping down on banks such as Bank of America, JP Morgan Chase, Ally and PNC. The sales of homes will certainly continue to decline as prospective buyers are now very leery of buying a bank owned property. Home sales in the Miami-Dade and Broward counties which of 66% of these sales were from bank owned properties in the month of September.
It is certainly a nightmare for homeowners who are trying to buy or are in the process of buying and may or may not end up closing because of the foreclosure freeze.
Will certainly buying a short sale or bank owned home can still make good sense, it is wise to make sure your realtor is doing their homework and you have plenty of time to close. This situation is only going to get more cumbersome now that the government is beginning to review the lenders foreclosure practices.
