Impact on the Neighborhood

By
Services for Real Estate Pros

How do "Distressed Properties" impact the neighborhood?

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!!!

What we do know is that Distressed Properties have a Negative Impact on Home Values According to some of the experts, Distressed Properties are going to increase....

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.

 

Comments (1)

Lois Davies
Century 21 Birchwood Realty, Inc. - Cape Coral, FL
Cape Coral & SW Florida

Hi MJ....I think we are going to see more foreclosures coming, and there are a lot of people waiting for them to hit the market.  Baby Boomers know they are a good value and have the cash to invest in a place for their retirement.  If the banks loosen the funding, for those that need financing, the market will move faster and we can start recovering quicker.

May 12, 2011 10:03 AM