Foreclosures To Go Down Next Year?
Foreclosures are expected to subside in the coming year. The latest data released by UFA L.L.C., a firm located in Ann Arbor Michigan that researches mortgage activity, states that foreclosures are expected to decrease in the next year. After four years on the rise there is no doubt that it will be nice to see foreclosures start to subside.
Improvements in the foreclosure arena are seen linked to tighter lending practices, home prices stabilizing, and an improving economy. The one element working against foreclosures is the increasing unemployment which will leave some without the ability to make their mortgage payments.
The onslaught of no-doc loans and inflated home prices led to four years of increasing foreclosures. The decline of real estate values is largely attributed to an elevated rate of foreclosures. A decrease in foreclosures will be a welcome sign for a real estate market that has seen better times.
Click here to read an article at Business Week about foreclosure rates. It will takes several clicks to get to the article, but a pretty interesting read.
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Comments (2)
I actually believe that the reduced foreclosures are due to the rising number of short sales that are now being done. Even though the number of foreclosures being started are still high the numbers making it to an actual foreclosure auction sale are decreasing due to the intervention of short sales.
Jim Wineinger, over 14 years ago
It would totally amaze me if the numbers of foreclosures dropped. In my humble opinion, I feel we have another 4-5 years until the numbers start to settle. I further think it will be about 6-8 years until the numbers start to drop. But, thanks for the data and the post!
James Ward, over 14 years ago