We have recently heard some encouraging news with regards to the housing recovery...home sales are picking up & foreclosures are down.
There are mixed opinions on the reason...
- Are the lenders delaying the foreclosure process?
- Are more homeowners opting for a short-sale?
- Has the housing market hit bottom?
Who Knows the Exact Answer?......Nobody!!!
From a report from Fannie Mae: “Our foreclosure rates remain high. However, foreclosure levels were lower than what they otherwise would have been in the first quarter of 2011 due to the delays caused by servicer foreclosure process deficiencies and the resulting foreclosure pause.”
From a report from Freddie Mac: “We expect the pace of our REO acquisitions to increase in the remainder of 2011, in part due to the resumption of foreclosure activity by servicers, as well as the transition of many seriously delinquent loans to REO.”
Bottom Line: It seems obvious that more foreclosures will be coming and they will have a negative impact on home values in many neighborhoods.