According to two studies conducted by the University of Chicago and Northwestern University, the number of homeowners defaulting on their mortgage (when the value of the home is less than the value of their mortgage) has increased significantly in the last year from 22% in 2009 in March to 31% in 2010.
The decrease in property values are pushing homeowners underwater. The social stigma attached to foreclosures is slowly eroding as delinquencies become more and more common. These industry studies find that even the homeowners that can afford to pay their mortgage are letting their homes go in increasing numbers. The study cites: “One likely reason for this growing trend is the increasing perception that lenders are not going after borrowers who walk away. In March 2010, homeowners surveyed said there was just a 54 percent chance that a lender would pursue them if they default on their mortgage.” Plus , “The results also indicate that the likelihood of strategic default increases by 23 percent when homeowners learn that their neighbor with negative equity has received a partial loan for forgiveness.”
This indicates that short sale opportunities are going to be available, and continue to rise in the near future. Learning to handle short sales should become a priority. It should help augment any agent’s sales, who has fallen on hard times lately.
For the latest real estate foreclosure news and information, please visit www.USHUD.com, America's only free foreclosure resource.
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