A Synopsis of the Foreclosure Scenario as in April 2010
The worst is not over yet, but there are signs of foreclosure problem receding – this is how one can surmise the foreclosure activity report for the month of April 2010 released by Realtytrac.
In the coming years, millions of American families are likely to lose their homes, once their mortgages adjust. The backlog is really huge, despite the federal government’s foreclosure mitigation plans. The HAMP and HAFA programs are yet to bear fruit, even after allocating $75 billion of tax-payers’ money.
Nearly 231,000 distressed home owners were benefited by the loan modification plan, in securing permanent modification to their monthly mortgage bill. But this is just 20 percent of the total sufferers – 1.2 millions of people who started the program over the last year. Lending banks are somewhat reluctant for loan modification, but even if they are ready to do so, there are still hundreds of thousands of borrowers, who do not qualify under the stipulated conditions or default once again even after loan restructuring.
The main catalysts pushing the foreclosure crisis into deep trouble are – raising unemployment rates and reduced income to the families or household this year. One more surprising fact is that although avoidable laxity in issuing home loans started defaults initially, borrowers with good credit record, who took conventional mortgages at fixed interest rates, are the fastest growing segment of foreclosures.
As of March this year, nearly 7.4 million mortgage borrowers, representing 12 percent of US households with a mortgage were stated to have missed at least one month of payment or in foreclosure already – according to Lender Processing Services Inc.
The statistics for April 2010 are encouraging though. Nearly 334,000 US households reported new foreclosure filings in April, one in every 387 housing units, which is a decrease of more than 9 percent from March and lesser by 2 percent compared to April 2009, and a record decline for the first time in 5 years.
Nevada continued to head the Top 10 list of States hard-hit by foreclosure rates – one in every 69 housing units receiving a foreclosure filing – followed by Arizona, Florida, California and Michigan, in that order.
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[...] The statistics for April 2010 are encouraging though. Nearly 334,000 US households reported new foreclosure filings in April, one in every 387 housing units, which is a decrease of more than 9 percent from March and lesser by 2 percent compared to April 2009, and a record decline for the first time in 5 years. Read More.. [...]