The dismal saga of the real estate industry in The United States continues, and despite the occasional bright spot, there is still plenty of bad news to go around. Sales were boosted for some time by the home buyer tax credit. A couple of more individuals were successful within the loan refinancing program from the government. Banks can skip property foreclosures, and simply repossess residences when owners default on their financial institution loans. Since last year, there was a 25 percent increase in repossessions.
Spike in home repos
Repossessions are steadily increasing. Since 2009, they have exploded. According to a recent report by RealtyTrac, repossessions are higher than have been recorded since the recession began. The number of repossessions in August 2010 was up to 95,364, according to Bloomberg. That is a new record. RealtyTrac has never documented that many repossessions. The numbers of repossessed homes, where a homeowner has to vacate the premises and the loan company tries to resell it, have only increased. Since August of 2009, repossessions increased 25 percent.
Foreclosures decrease
Do not despair entirely. There is good news. There are fewer defaults and foreclosures since July of this year. That being said, there is a difference between foreclosures and repossessions. There is a whole lawful process that has to be followed for foreclosures. A homeowner in default, if the home gets sold, is responsible for making up the difference in purchase price, should the home be sold for a loss. Repossessed properties are different. You will find less lawful hang ups, and paperwork. The homeowner is simply kicked out and the home is resold.
More properties awaiting sale
There is an incredible stockpile of available properties, some at discount prices.
If an individual can qualify for financing they can do well, however it will never be the case that properties can be sold for a small loan cash. As it stands today, one in every 381 properties in The United States has received a foreclosure notice.
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Bloomberg
bloomberg.com/news/2010-09-16/bank-seizures-of-u-s-homes-reach-record-for-the-third-time-in-five-months.html
