Categorized | Residential

Foreclosures Set to Flood Market

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Economists are anticipating that another round of foreclosures will soon hit the market. The number of foreclosures available fell significantly in the past year due to the robosigning controversy. However, now that a settlement has been reached, many lenders are now proceeding with the filing process.

 

A significant number of foreclosures have actually been in limbo status for the greater part of two years. Many lenders opted not to process those foreclosures in fear that it would hinder their chances of reaching a settlement.

 

Delinquent borrowers, however, will no longer be able to remain in their homes without making a payment. Lenders are now catching up on the backlog of foreclosure candidates. They are expected to process many of the foreclosures at a much faster rate than had been seen in the last year or two. In some areas, such as New York, the average time it has taken to process a foreclosure has been roughly three years.

 

The increased number of foreclosures will likely have an adverse impact on housing prices in the United States. While the market has shown signs of price increases in the past few months, that trend will likely be reversed once the new wave of foreclosures becomes available.

 

With mortgage loan rates at record-low levels, and a record number of foreclosures hitting the market, buyers are set to most certainly benefit from current state of the residential real estate market. Many real estate analysts believe that the market will still begin its recovery in 2013, though there has been no indication as to whether the recovery will take place early or late in the year.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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