Photo of a mobile home.
The number of repossessed homes is still increasing. CC by Graham Horn /Geograph

The last year in real estate has been pretty volatile. There were some upticks in sales, but those disappeared with the home buyer tax credit. The government offered the loan modification program, but that was not as effective as hoped. Banks can skip foreclosures, and simply repossess homes when owners default on their bank loans. In fact, repossessions increased by 25 percent since last year.

Repossessions increase

The rate of repossession has become near epidemic since August 2009. According to a recent report by RealtyTrac, repossessions are higher than have been recorded since the recession began. The number of repossessions in August 2010 was up to 95,364, according to Bloomberg. RealtyTrac has not yet recorded numbers that bad. The numbers of repossessed homes, where a homeowner has to vacate the premises and the loan company tries to resell it, have only increased. Since August of 2009, repossessions increased 25 percent.

Defaults and foreclosures recorded

Don’t despair entirely. There is good news. Overall foreclosure and default notices decreased by 5 percent since July of this year. Take that with a grain of salt, though. Repossession and foreclosures are a bit different. There is a whole legal process that has to be followed for foreclosures. A homeowner in default, if the home gets sold, is responsible for making up the difference in purchase price, should the home be sold for a loss. Repossessions are just when the bank or finance company kicks a delinquent homeowner out but doesn’t start any legal proceedings and just resells the home.

Inventory is increasing

There are a lot of foreclosed homes available at rock bottom prices. If people can qualify for financing they can do well, but even with the current low prices people are having trouble getting loans. As it stands today, one in every 381 homes in America has received a foreclosure notice.



Post By bryanh (1,420 Posts)


Do you have a fantastic idea related to this article, but just don't have the money you need to start your own company or side-business? Get the loans you need from to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.

PG&E to pay $70 million for pipeline tragedy

PG&E to pay $70 million for pipeline tragedy

Pacific Gas and Electric Co., a northern California utility, has agreed to pay $70 million to the California town of San Bruno for a pipeline explosion that killed eight people in 2010. Company says it’s remorseful The San Francisco-based power company’s president, Chris Johns, released a statement Monday, saying PG&E is sorry and eager to […]

Judge stabbed and deputy shot in Washington courthouse

Grays Harbor County Courthouse

Following a standoff in a Washington state county courtroom Friday, a man reportedly escaped after shooting a sheriff’s deputy in the shoulder and stabbing a judge in the neck. The man is still at large. Treachery among the tree farms The incident occurred Friday afternoon in the western Washington town of Montesano, which bills itself […]

Microraptor was one flashy little dinosaur

Microraptor fossil

A team of Chinese and American scientists have found that Microraptor, a small four winged dinosaur that went extinct about 130 million years ago, was likely black and almost certainly had glossy, iridescent feathers. Until now, the coloring of extinct creatures was a matter of pure speculation. That may no longer be the case. The […]

Autocorrected message leads to school lockdown

Homage to the Sun

Adjacent schools in Georgia were locked down for two hours Wednesday after a text message reportedly warned of a “gunman” on campus. Later, it was learned that the message was the result of a smartphone autocorrect function, attempting to “fix” the misspelled slang word “gunna.” A series of mixups A series of mixups led to […]