Hike Up Your Pants – Here Comes the Next Foreclosure Wave
Until the fab five (BOA, JP Morgan Chase, Citibank, Wells Fargo & Ally Financial) recently signed the $26 billion dollar mortgage settlement, borrowers who hadn’t been paying off their loans were actually able to avoid bank repossession for over a year (370 days to be exact). That’s double the amount of time from five years prior, thanks to many banks’ half-assed foreclosure processes.
Would you believe that some borrowers in certain states actually stayed in their homes for close to three years. Three years and made NO mortgage payments! They should be rolling in the dough, right? But the wait may be over sooner than later, and delinquent borrowers who many are referring to as “squatters” (they must have some serious quad muscles by now) should start collecting boxes and bubble-wrap now in preparation for their inevitable relocations.
THE NEXT FORECLOSURE WAVE
It may take months or years before the next foreclosure wave comes to fruition, but everyone should be prepared for both an increase in foreclosure and short sale activity and possible decreased home prices, which is even more motivation for banks to churn and burn when it comes to foreclosures. Listing site, Zillow, says home values will fall another 3.7% by the year’s end and hit rock bottom by early 2013. When you’re on the bottom floor, there’s only one way to go from ground-zero, and that’s up, so once the market stabilizes, hesitant buyers will pounce on opportunities to invest like cats in heat (Rrrrrrrrrrrrrrrear baby, yeah!).
RealtyTrac recently reported foreclosures in general were down during the first quarter this year, but filings increased 10% in 26 states, 45% in Indiana and 26% in Florida. Reports indicate that the foreclosure completion rate is already increasing as well. Lenders are becoming more confident that foreclosure filings will pass tough court scrutiny. Noah knew it, and so did Evan Almighty, but are you ready for the flood?
More recent stories on the Next Foreclosure Wave are at the following links: