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Thursday, September 16, 2010

US homes lost to foreclosure up 25 pct on year

This is a follow up post for the major spike in home repossessions by lenders in August.  This article is now taking an account for the whole year.

That's one reason fewer than one-third of homes repossessed by lenders are on the market, said Rick Sharga, a senior vice president at RealtyTrac.
"These (properties) are going to come to market, but very slowly because nobody wants to overwhelm a soft buyer's market with too much distressed inventory for fear of what it would do for house prices," he said.
As a result, lenders are putting off initiating the foreclosure process on homeowners who have missed payments, letting borrowers stay in their homes longer.
Also, the government sponsored loan modification program is failing, so now a lot of homes are being foreclosed by lenders.  In addition, defaults are around the same level as last year
In all, 338,836 properties received a foreclosure-related warning in August, up 4 percent from July, but down 5 percent from the same month last year, RealtyTrac said. That translates to one in 381 U.S. homes.

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