Friday, January 14, 2011

Banks foreclose on 1 Million Homes in 2010; More to Come in 2011

Associated Press

NEW YORK

Banks took back more than 1 million homes from delinquent borrowers in 2010 and this year likely will be worse.

Foreclosure tracking firm RealtyTrac says last year's total bank repossessions was the highest annual tally of properties lost to foreclosure on records dating back to 2005.

A record high 2.9 million homes received a foreclosure filing last year, or one in 45 U.S. households. That's up 1.67 percent from 2009.

Industry analysts expect foreclosures to peak this year as lenders move through a backlog of 5 million delinquent loans and more people fall into trouble because of job loss or other economic troubles.

The number of households receiving a filing in December fell to the lowest level in 30 months as banks reviewed their foreclosure practices.

Notes from Dan Basil ~ GRI, Residential Short Sale and Foreclosure Specialist:

After attending a Banker's conference this past Wednesday, it was revealed that a collecive number of banks have over a million additional homes they are holding in inventory and have not released to the market. The reason they have not put these inventory homes on the active market is due to the fact that they would devalue their current homes on the market if they were to flood the market with more inventory. For now they will wait to release what they are calling "shadow inventory" homes.

Meanwhile, the 5 million delinquent homes, many of which are behind on their mortgage 5 months or more, are being looked at for alternative solutions to foreclose. And, there are many alternatives to foreclosure including: loan modification, forbearance, short sale, and deed in lieu of foreclosure. Banks are looking at these alternatives, especially the short sale option, in order to curtail the losses they are taking as a result of homes going into default.

If you or anyone you know is going through a struggle with their mortgage, it is not an uncommon phenomenon in today's world. Past the distraught or even helpless emotions that occur, there are solutions. The Basil Group has knowledge of resources that can help people in many instances through the murky waters of having trouble with their mortgage. Call or email The Basil Group today:
(763) 550-3888 or info@thebasilgroup.com All communications will be held in the strictest of confidence and with the utmost respect for you or your friend who you recommend contact us.

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