7 July 2009 ? More foreclosures are to come. While the housing market has been showing signs of stabilization, we may see another surge of foreclosures before the end of summer, according to several major banks. Why now? Since the end of last year many lenders have held off on foreclosure proceedings, instead offering loan modifications made possible by President Obama?s home-stability plan, to qualified borrowers. But as these programs expire, many lenders have indicated that they will move aggressively to clear huge backlogs of delinquent mortgages. Additionally, with layoffs still on the rise, the pool of buyers qualified for modifications keeps shrinking. Obama?s administration has indicated that they are unlikely to implement another moratorium. This potential dumping of foreclosed properties into the inventory pool may counteract the balancing of supply and demand that has driven market improvement over the spring months, and could drag prices that were slowly improving in some areas back down.Email This Post To a Friend.
More Foreclosures To Come
July 7, 2009
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