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.
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.
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 https://personalmoneynetwork.com to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.