The selling of foreclosed homes has slowed over the past few years. It’s harder to lose a home due to foreclosure, even when not making monthly payments. This keeps homeowners afloat during this economic downturn. But is this helping or hurting the housing market in the long run? Real estate professionals believe it may be delaying the inevitable.
While nationwide the rate of foreclosure has declined since 2010, it’s still a very real issue in our current economic climate. According to CoreLogic’s National Foreclosure Report, foreclosures are down 21 percent when comparing December 2011 to December 2012. But it’s important to note before the housing crisis began, the national average was only 21,000 foreclosures per month compared to 56,000 foreclosures in December 2012.
RealtyTrac’s 2012 annual survey has similar statistics. Foreclosed filings are down 3 percent from 2011, and down 36 percent from the peak in 2010. However, that’s still 1.8 million properties that our nation dealt with foreclosing in 2012. With the national average of home foreclosure at 414 days, many of 2012’s foreclosures will sell this year and some even in 2014.
There are pros and cons to the giving foreclosure terms. On the positive side:
- Exceptionally low interest rates create an ideal environment for potential homebuyers.
- The generous terms help struggling homeowners stay afloat during our challenging economic climate.
A few negatives include:
- Foreclosed homes will sell for much less than homes in the same area. Foreclosed homes have the potential to lower the values of neighboring properties.
- If the owner of a property has moved, the foreclosed home could be sit vacant, allowing for an unkempt appearance and a potential threat to the neighborhood.
While the number of foreclosures is on the decline since 2010, the numbers are nowhere near what they were before the housing crisis. As foreclosures continue to affect our nation, where do you stand on the issue?
Are you in the process of a foreclosure and need assistance in document research? Our document retrieval services are confidential and professional. For more information about Blue Streak Doc mortgage-specific services, such as deed-in-lieu, lien position, and foreclosure, give our offices a call today: 727-479-0007.