The US Housing Market Sees Record Number of Foreclosures in 2010
A grim report came out last month that 2010 set a record for house foreclosures in the US. What is even worse, analysts say 2011 could surpass last year's record. Any guesses on the figures? Let me tell you, one million homes were seized by banks last year.
Realty Trac, a tracker for foreclosures, reported that nearly five million property owners were two months or more behind paying their mortgage. It is estimated the cause is high employment, and until that number drops, neither will foreclosures. Outside of Florida, the other states hit the hardest were California, Nevada and Arizona, all warm weather states with the majority in the West.
Another disturbing tidbit of information, some of the homes were foreclosed in error, as banks were gathering their figures on improper documentation. This results from something like the bank could not prove they owned the property or the person completing the foreclosure procedure was not qualified and did not read the documents. The presiding Justices stated that the foreclosures were done carelessly. US Bancorp and Wells Fargo topped the list.
These robo-loans, as they are called, caused a stir in the market which caused Bank shares to drop sharply. This having been corrected will help the real estate market rebound. Experts in the field say after this year a recovery should be in sight, though some would argue it will not happen before 2013. As for right now, it is all just speculation.