Even as the Obama administration is expecting to expand its mortgage aid program, the nation is on track to experience record-setting amounts of foreclosures and bank-owned properties in the second quarter of 2009.
The first quarter of 2009 set a new record with 803,489 foreclosure filings, and it is predicted we may have a first-ever quarter with more than one million foreclosure filings.
Although it has yet to be announced, the new initiatives are expected to include ways that allow borrowers to avoid foreclosure by selling their properties as a "short sale" (whereas the home is sold for less than the amount owed on the mortgage, but is considered "paid off" by the lender), or giving them back to lenders (deed-in-lieu-of-foreclosure in which the borrower gives the property back to the lender to satisfy delinquent loan to avoid foreclosure).
It seems we are turning to pre-moratorium percentages, with a rather large initial increase in the second quarter as properties that have been in the moratorium flood through. More than one million foreclosure filings in the second quarter of 2009 are expected.
After a10% decrease in foreclosures for January, foreclosure activity across the nation increased 6% in February. The so-called "Sand States"...California, Florida, Nevada, and Arizona...top the lists of foreclosure rates.
In the next three months, we can expect to see more than one million foreclosures hit as the foreclosure moratorium is lifted.
To be continued...
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