January 2010 Foreclosure statistics show welcome signs
It is not over yet. Millions of homes are still struggling under foreclosure crisis. Yet it is heartening to go through the figures reported in authentic real estate sites for the month of January 2010. Yes – amidst the gloomy situation engulfing the entire US country and creating untold anxiety in the minds of troubled home owners, any sign of improvement towards reduction in foreclosure figures is a welcome change.
Compared to December 2009, the total foreclosure listings reported nationwide put together has been 315,716 homes. This is nearly 10 per cent less than what it was in December 2009, although it is 15 per cent more than the level of January 2009. This figure includes – default notices, scheduled foreclosure actions and repossessions by banks and other mortgage lenders.
Category wise break up also shows decline in the trend reported. From the previous month, Repossessions are down by 5%; default notices down by 12% and foreclosure auctions scheduled to take place are down by 11%. These figures when compared to January 2009 are up by 31%, 4% and 15% respectively. This is understandable from the view point that on a year-to-year basis, the foreclosure activity has gone up.
Distressed home owners burst out a sigh of relief by taking note of the situation obtaining as above, in the real estate markets nationwide. This is because, when there is reduction in the foreclosure activity statistics, the chances are more in disposing off their equities – through Multiple Listings, For Sale By Owner and Short Sales. The pressure brought by foreclosure properties at throw away prices in seeking prospective buyers is somewhat reduced.
Talking of Short Sales, unquestionably there is a spurt from different parts of the country – more specifically from California and Florida – in making use of the escape route of Short Sales. This is getting momentum by the awareness among troubled home owners, as the best alternative in foreclosure avoidance.
By resorting to Short Sales those facing foreclosure processes of their homes or in the verge of foreclosure public auction can get away from the crisis. They can clear the debt from the sale proceeds by getting “forgiveness” for the balance mortgage loan through Short Sale approval of the lenders.
Instead of undergoing the ordeal of foreclosure and ruining the credit history, which can cripple their financial activities for at least seven years to come, Short Sale option can give them the relief much desired. It is in this context the recent foreclosure activity statistics announced for the month of January 2010 are most welcome.
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