Stringent loan criteria’s and declining home values are leading to a record number of foreclosures. John Nelson chats with Brian Williams about the alternatives to foreclosure and the benefits of a short sale.
As Foreclosures rise, more sellers and lenders consider short selling due to the enormous benefits for both parties involved. As the number of mortgages entering the foreclosure process are increasing to record levels, the 44 million mortgages, about 0.72 percent — that's 254,590 or one out of every 122 loans, are now officially in foreclosure.
Foreclosure occurs when borrowers have not made two or more payments and lenders respond by filing a legal notice and commencing a legal proceeding to take possession of the home.
The record number of foreclosures does not appear to be evenly spread around the country. According to the Mortgage Bankers Association, the rate of mortgages in foreclosure would have fallen if not for big jumps in foreclosures in local markets of California, Florida, Nevada and Arizona, where investors who bought on speculation that values would rise are walking away from property that is now worth less than they owe. Also, in regions of Ohio, Michigan and Indiana, areas marked by large job losses in manufacturing are seeing big increases in foreclosures.
PROUDLY AFFILIATED WITH |
||
|---|---|---|
Home | Short Sale | Property Owners | Realtors | Why Us? | Contact Us | Glossary | News | Video | FAQs | Site Maps | Blog | Links | Privacy | Terms of use
© 2007 Copyright National Real Estate Solutions.org. All rights reserved