Foreclosures Looming in the Future
Posted: December 14, 2009
For those who have experienced the highs and lows of the current real estate market, the threat of foreclosure might as well be a four-letter word. Unfortunately, several experts are predicting another round of them this upcoming year - almost 7 million, to be exact. That's an increase of approximately 5.73 million homes, from statistics in 2005. Areas in Southwest Florida, including Naples, Bonita Springs, Fort Myers, and Cape Coral, are already experiencing a vast amount of foreclosure activity, and aren't looking forward to the new prediction.
Reasons for the second wind of these foreclosures are varied - banks who are simply overwhelmed with the sheer number of properties (and paperwork) are struggling to keep up. Some banks are also using a mortgage modification as their first line of defense, and trying to evaluate whether the property owner is eligible to have their payments reduced. Lastly, some states have required short-term moratoriums, or waiting periods, before continuing with the delinquency/foreclosure process.
Whatever the reason may be, there is certainly the threat that this "new wave" may take a pretty large dent out of the gains that have recently been made in the real estate market. Hopefully, the tax credit extension will offset some of the damage.
As always, please feel free to contact me at 239-357-9558 with any of your Real Estate needs or questions. Rgds, Jay
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