We’re headed for another tidal wave of more foreclosures to come . There are many people that will greet this with approval because a foreclosure delay will extend their short sale or REO dates. But in reality, it will only prolong the inevitable process of the ultimate sale or auction. In the meantime, you may need to find solutions for staying in your home.
Foreclosure Delays Extended to 2012
Many of the homes that were expected to in 2011 are now scheduled to foreclose in 2012.
James J. Saccaio, chief executive of Realty Trac stated “with unemployment rates rising, consumer confidence low and home sales and prices weak, he said the economy is not likely to drive an improvement in real estate any time soon. Foreclosure delays are only extending the time when a recovery might start, according to Realty Trac, based in Irvine, California.”
Most lenders have not been able to employ enough staff to manage the insurmountable number of foreclosures that have plagued the industry. In addition, because of the fraudulent practices that the lenders/banks were employing, such as “robo-signing,” this has caused another delay in going forward with processing the required paperwork.
Unfortunately, this has postponed many mortgage processors from continuing their work until the rules have been tightened up.
Even with the $25 billion dollar settlement completion among the 5 big banks, it still does not appear to be a win-win situation for the distressed homeowners.
In May, 2011 distressed homes accounted for 31 percent of existing home sales as reported by the National Association of Realtors (NAR). Furthermore, a 20 percent reduction in price is another factor that will continue to contribute to a declining real estate market.
Overall, it’s not looking like we’re headed towards restoration and recovery anytime soon. Many people will brace themselves for the forthcoming tidal wave of the “double dip.”