The bleakest year in the foreclosure crisis has only just begun.Even if the number of foreclosures starts declining in 2012, it will remain above the historic norm for several years to come.
Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and industry experts say more people will miss payments because of job losses and also loans that exceed the value of the homes they are living in.
"2011 is going to be the peak," said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. The firm predicts 1.2 million homes will be repossessed this year.
The blistering pace of home foreclosures this year will top 2010, when a record 1 million homes were lost, RealtyTrac said Thursday.
Saturday, January 15, 2011
2011 will be peak year for foreclosures
RealtyTrac predicts 2011 will have the most foreclosures since the housing crisis began in 2006:
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I also read where 1 out of 11 homeowners will receive a foreclosure notice. That's unbelievable. All of the cash I have saved renting the last 6 years since I moved here will put me in a great position for a sweetheart deal. I personally know of five homeowners who haven't made a mortgage payment in more than 16 months.
ReplyDeleteThe sad part about this, is that the guys who havent paid a mortgage payment in more than 16 months are the true winners.
ReplyDeleteThey got to live totally rent free for over a year, and probably will get to live rent free for another before the foreclosure actually hits them. When its all said and done, they will probably be able to buy again a year or two after they were foreclosed on, because that will be the norm and banks will have to sell to someone....even those who have been foreclosed on previously.
Meanwhile, you and I have paid rent all these years. Its depressing.
Actually, peace of mind is more valuable than foreclosure.
ReplyDelete>Actually, peace of mind is more valuable than foreclosure.<
ReplyDeleteFor sure. You can live "rent free" but look at the damage to your credit record and even prospects for a job. Some companies see decent credit records as a sign of responsibility.
Though housing will be at its peak this 2011, it is possible that foreclosures will be also at its peak. Some of these foreclosures are from the loans of 2010.
ReplyDeleteI can't agree that the people getting foreclosed on are really "winners".... they'll end up renting for a while, and their options will be severely limited, particularly if the loss of a job is what caused the foreclosure..... good luck trying to rent in any major city with less than perfect credit.
ReplyDeleteMH has it right. No amount of free rent is worth a shattered credit rating. Besides lending the credit rating affects everything from buying insurance to getting a job.
ReplyDeleteThe winners are the lenders to took their fees from making these awful loans then sold the debt to Wall Street. They got the cash and escaped any meaningful liability.
And we the taxpayers have the honor of cleaning up the mess. Terrific.
Watch it start over and all happen again over the next 15 years.
jj
Where are the bulk of all these foreclosures going to hit. People seem to write or blog a record number of foreclosures to hit but never say where. Is it just 5 states with 90% of the foreclosures? Would that mean that there are 45 more states that are out of this mess. It just seems the broad brush strokes depress all markets.
ReplyDeleteSeaman
Well when 25%+ of the population have a foreclosure on their credit, it wont mean a thing.
ReplyDeletei think everyone should read "how might warren buffett invest in real estate?" so that we don't get into the trouble that we got into recently with the real estate crash and foreclosures. you can find it on amazon.
ReplyDelete