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Statistics About Foreclosure Homes From Freddie Mac Foreclosures

Kevin Simpson — Tue, 01 Feb 2011 15:57:56 +0000

Freddie Mac has over 1.5 million homes for sale at any one time. These are obtained as a result of the previous buyers defaulting in the loans.

In April last year, they were planning to sell of 300 homes in Southern California and Las Vegas. The quick sale would allow buyers to receive an $8000 tax credit for first time buyers.
Freddie Mac still wants to prevent foreclosure and in a time when the housing market is far from stable, they have been able to keep over 132,000 American families who are struggling financially to either be able to stay in their homes, or sell them on rather than lose them. When the foreclosures are sold, they are sold at very low prices, so anything that can be done to stop that is to be welcomed.

Once a home has been lost, however, Freddie Macs need to sell it to the next buyer as soon as possible. In 2009, they gave a deal that would have made it much easier to buy a house. As well as agreeing to cover the closing costs, they also gave a free two year home warranty to cover all major appliances and also the possibility of buying new ones with a 30% discount.

3.5% of the cost of the house will be covered as a result of Freddie Mc paying the closing costs.In 2010, it does appear that things are beginning to improve, as the amount of bad loans began to decrease. While this is good for many people, builders are being affected as people are choosing to buy a foreclosed home rather than have major renovations on their own or even go for a new build.The number of available properties might decrease if people realized the cost involved in a bank foreclosing on a loan. While some lenders will put the figure at between 20 and 25% of the loan, Freddie Macs put a figure of $60,000 on it. They also consider that 68% of low income owners could be spared the problem if they admitted that they had a problem at an early stage. For owners who did this in 2009, Freddie Mac foreclosures arranged loan modifications, Home Affordable Modification Program and this helped some 42% of the 16,000 properties. Figures improved in the last part of the year, but they were still at 29%.Only time will tell if the HAMP program works.

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Texas Foreclosure Rates Remain Low as 2010 Ends

Kevin Simpson — Mon, 10 Jan 2011 16:55:05 +0000

Texas foreclosures have long known for their low numbers during the economic recession when they are compared to the economic state of rest of the nation. But, recently there has been a slight change in these numbers as foreclosure filings have been on the rise in some parts of the state. Despite the increase in foreclosure filings by banks, consumer analysts remain optimist and point out that the actual number of loans in delinquency has declined overall in the state. Investors and buyers can still find good deals in Texas when buying real estate. There are still bargains to be easily found at reasonable costs. Texas still remains one of the lowest areas in foreclosures when compared to the hard hit states, such as Arizona, California and Nevada, which are leading in the nation’s foreclosure rates.

Dallas foreclosures had the largest increase in the state at a 25.36% change from November to December, 2010. Foreclosure filings were at their worst in 2009, and their numbers have been dropping off since. Another thing to take into consideration is the foreclosure statistics may actually be stalled and not improving, due to challenges surrounding the mortgage moratorium that many homeowner have applied for. There are other reasons for doubting the foreclosure numbers and homeowners who used the government loan modification program. With the program, the homeowners were offered a three month trial period that also prevented foreclosure on their loans. The idea behind this delay in filing was to allow homeowners time to work on their financial problems. The banks also liked the idea of not having bad loans on their books, which caused them to have trouble with the Federal Reserve. The overall effect of the modification program was that the foreclosure numbers immediately started to drop. Other areas of Texas with increases are Desoto foreclosures at 10.56% and Rowlett foreclosures at 10.22%, during the November to December 2010, time period. Experts contribute these increases to the recent rise in unemployment in Texas, which also remain lower than the rest of the nation.

El Paso foreclosures of -4.23 were a decline from November to December 2010, which the Texan Association of Realtors, state should be higher. Based on the foreclosure rate information, the large state of Texas was able to remain on the low part of the nation’s foreclosure chart. Lewisville foreclosures were a -2.13 decrease and Austin foreclosures were a -1.5% decrease both occurring during the November to December time period. Prices of homes in Texas are much lower than in such states like California making Texas homes a better bargain for investors and home buyers. But still, the housing market in the United States was rough in 2010, making experts concerned about what will be happening in the next year.

All through the United States, property values were falling quickly and made foreclosures rate rise. The lowest interest rate in fifty years on mortgage loans seemed to do little to nothing to stop the fall in the housing market. The mortgage crisis seemed to miss in regards to the Texas foreclosures. Still there is reason to be concerned that 2011 will be another year of delays in the government assistance, since pervious promises have not helped the overall picture of the nation’s real estate market. The good news for Texans is that their state is in a better economic position than any of the other states in the country, because the state resisted raising taxes and has a budget surplus. Other factors which helped the Texan economy in December 2010 was the frenzy of Christmas shopping and after Christmas sales where shoppers headed to the malls in record numbers to spend their holiday cash.

Florida’s Foreclosure Rate on the Decline

Kevin Simpson — Wed, 05 Jan 2011 13:10:39 +0000

Last month’s recent decline in the number of Florida foreclosures is a welcome help to the state’s economic outlook. The hope is that these changes will provide more jobs for working people who are still struggling with unemployment. These numbers are promising to the state, which is still recovering from last summer’s devastating effects of the Gulf Oil Spill on its tourist economy. But, even with the decline in Florida’s foreclosure rate, there are still hundreds of thousands of homeowners who are still facing losing their homes. The high number of homes still in trouble is coming mostly from borrowers who owe more on their mortgages than the homes are worth. When this is combined with the high unemployment rate, big problems still remain for Florida’s sluggish economy. Analytics are expecting that by the end of 2011, the unemployment rate will see improvement. These changes will be good news for the construction industry, as well as the real estate market, which both were down during the last month of 2010.

Particular attention has been given to the increase in Naples foreclosures, because many are Florida’s most luxurious homes. Although, the foreclosure rate on these luxury homes is still less than the lower priced properties, they are notably on the rise. The poor and the middle class are no longer alone when it comes to feeling the pinch of the slow economy, now the wealthy are joining in their ranks. The Naples foreclosures had 15.37% increase from November 2010 through December 2010. Another factor contributing to the increase in foreclosures is that fewer people at risk are actually getting any type of assistance to lower their monthly mortgage payments. Bradenton foreclosures, another community of luxury homes, had an increase of 20.62% from November 2010 through December 2010. While Jacksonville foreclosures had increase rate of 15.29% and Sarasota foreclosures had a 9.44% change from November 2010 through December 2010

There are cities in Florida that have shown a decrease in their home foreclosures rate. This decrease was created by mortgage banks, when faced with an enormously high inventory of home foreclosures, began urgently working at unloading these home repos. Some of the techniques being used to move these homes are surprising low prices, and large bank discounts. However, there are many investors, and homebuyers who are still considering all the options available to them, and are holding out for further discounts. The huge amount of unsold homes has been affecting builders, and developers who have constructed homes, and now have not been able to sell them, because of the competition they are receiving from foreclosed homes that are being sold for much cheaper. This also has had its toll on unemployment numbers as construction companies are forced to downsize their company’s operations by cutting jobs. Still communities welcomed the decrease in the foreclosure numbers. Some of the cities which have noticed the biggest decline in home repos are Hollywood foreclosures at -25.85% and Miami foreclosures at -0.52% change during the time period of November 2010 through December 2010.

In spite of Florida foreclosures dominating the headlines, there finely is good news which came in December, 2010, regarding the biggest offshore oil spill in United States history. The Department of Justice has filed suit against BP, and the other eight companies which are responsible. The outcome of this ruling will force BP, and others to pay the billions of dollars they owe due to lost wages, and the cost of cleanup. Another good sign in recent days the recession in Florida may finally be coming to an end is that shoppers spent more on Christmas this year than at any time since the recession began.

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Experts Worried About the Future as the Rate of Foreclosures Rises

Julie Parker — Thu, 25 Feb 2010 10:29:43 +0000

The foreclosure crisis is on the rise because of various economic factors facing the American public today. There is soon going to be a readjustment of the rates of mortgages and that will raise the number of foreclosures even further.

According to various surveys the last year was bad enough with at least one house among seven were being foreclosed. This year the scenario is more dismal as the areas which were safe from this crisis seem to be coming within the grips of foreclosure.

A report from the Bloomberg.com says that due to the rising problem of unemployment about three million houses are expected to be foreclosed. Besides the decreasing value of the houses render the owners helpless to pay up their loans. Even the period of Great Depression was not as severe as this crisis generated by the foreclosures, according to Bloomberg. Their report also says that the jobless status of the people is the prime reason why the owners are unable to meet their loan demands. This is resulting in foreclosures. Added to this is the fact that many property owners just give up their payments when they realize their reduced home values. Despite their ability to pay they simple yield their houses, since the non payment is much more lucrative than paying to retain the property.

On the 3rd of February this year the report from the Daily Finance predicted an alarming situation by the middle of June this year. Nearly 5.1 million owners will have their house value reduced. Their total property value will be less than 75% of the mortgage value they still have to pay. It is a situation like this that prompts the owners to simply walk away and leave their property to be foreclosed.

Foreclosures have a negative effect on the properties of the surrounding area. The foreclosed houses often tend to lower the house value of all other properties of that locality. It is for this reason that banks do not want all the properties owned by them to be sold at the same time. If that happens, then the banks will incur heavy losses.

Not just the banks and financial lenders, even the real estate sector is reeling under the effect. The number of defaulters among credit card holders is steadily on the rise.

According to the experts this year the crisis is bound to rise. Banks and other private lenders have been assisted by the government to tackle the situation but the main causes have not been removed yet.

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Foreclosures on Rise in Mid-West, New Reasons and Predictions Follow

john — Thu, 31 Aug 2006 14:07:49 +0000

New research shows that national foreclosure rates are still rising. Foreclosures are up 38% this year, higher than any other quarter in 2005. One of the areas hit hardest by this trend is the mid-west, where automotive industry layoffs are attributed with rendering people unable to make their mortgage payments. Ohio has seen a rate increase of 39%, while Michigan displays a staggering 91% increase in the amount of homes entering the first stage of foreclosure.

In addition to the corporate downsizing and industry layoffs, other factors that have been blamed for rising rates in other areas are once again seen as the cause, namely rising interest rates and levels of people who are in debt in other financial sectors. Adjustable Rate Mortgages are seen as a culprit as well, as people may have jumped into them in order to be able to avoid a large down payment. As the monthly rate rises, many people are caught off guard.

Property values are also on the rise, as well as utility and gas costs, making for an altogether financially stressful time for homeowners with ARMs or who have just lost their jobs. Some experts believe this trend will not only continue, but will probably get worse before it gets better. As ARM interest rates continue to rise, and ARMs taken out in the past year move past their introductory first-year flat rate period, things could get much worse not only in Michigan and Ohio, but nationwide as well.

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