Foreclosure Growth Rates Appear to be Slowing Down

The heady pace of foreclosure growth we’ve witnessed over the past several years appears to be slowing down. According to RealtyTrac Inc., the number of  homeowners facing foreclosure last month grew 6% from the same time last year, which is the smallest annual increase seen in four years.

However, there are concerns regarding the large number homeowners still being evaluated for help under loan modification programs. More than likely, a lot of these same people will lose their homes, resulting in a new round of  foreclosures in the later part of 2010. 

In February of this year, banks across the nation repossessed approximately 79,000 homes, which was 10% less than January, but still up 6 % from February last year. According to RealtyTrac, approximately 2.8 million households were faced with foreclosure last year. The number of foreclosures is expected to increase to more than 3 million homes this year.

Typically, homes in foreclosure are sold off by banks at rock bottom prices, causing property values in the surrounding area to drop. Cities are also affected, loosing property tax dollars from those same homes sitting empty on the market.

The Mortgage Bankers Association sent out an optimistic report last month, stating the percentage of homeowners who had missed just one mortgage payment fell to 3.6% in the 4th quarter, compared to 3.8% the third quarter. Although the decrease was definitely good news overall,  foreclosure rates were still at all-time record highs.

The highest foreclosure rates in the country were in Nevada, even though foreclosures were down in Nevada by 7 % from January and down more than 30% from last year. Following Nevada in foreclosures were the states of Arizona, Florida, California and Michigan. 

According to Rick Sharga, a senior vice president for RealtyTrac, “It’s premature to declare victory just yet.” He went on to say that “If this is the beginning of a slowdown in growth rates, that would be a good thing.” However, It’s  estimated that current unemployment rates and/or reduced household income will continue to plague our economy and be the main cause of foreclosures in the coming year.

Charlotte NC Avoid Foreclosure Expert

Leigh Brown is a Certified Distressed Property Expert® (CDPE) and the leading avoid foreclosure expert in the Charlotte metro area. If you or someone you care about is facing  foreclosure, Leigh Brown offers the most most qualified avoid foreclosure help available! 

You can reach Charlotte’s number one foreclosure expert, Leigh Brown, by filling out her online contact form , or give Leigh a call at (704) 688-5005 or toll free at (866) 440-7136.

Leigh Brown can help!

Article Sources:
RealtyTrack
Mortgage Bankers Association
CNBC
Yahoo News