Jump to Navigation

Start of New Year Does Little to Stall Rate of Home Foreclosures

The holidays have come and gone with a brief respite from the nation's home foreclosure woes.

Every holiday season brings a slowdown in foreclosure activity as mortgage lenders such as Fanny Mae catch the Christmas spirit and refuse to evict people until after the New Year. But like a glass of stale champagne on New Year's Day, reality is about to hit in a bitter way.

The nation will see another wave of bank repossessions in 2012 according to RealtyTrac, an online foreclosure sale website. The reason is that about four million delinquent mortgages are about to hit the pipeline as banks resubmit documents and courts begin to hear cases again.

Overall, foreclosures nationwide are down 14 percent from a year ago, but a surge in defaults that occurred back in August is about to make an impact. Nevada has led the nation in foreclosure rates for the past four years; however, a new process that requires more documentation dropped the state to ninth place in RealtyTrac's recent survey conducted in November. That left California in the top spot, with Florida, Michigan, Illinois and Georgia rounding out the top five. Michigan had 13,777 houses in some type of foreclosure activity in that survey mainly due to the state's chronic high unemployment rate.

What this means for struggling homeowners is that the value of their homes will continue to drop at least for the short term. It is possible that government agencies may sell foreclosed properties in bulk to investors, but nothing is confirmed yet. Until the backlog of distressed properties is cleared, there is little expectation of an upward trend in the housing market.

Source: CNBC, "A New Foreclosure Wave is Coming," Diana Olick, 12/15/2012.

No Comments

Leave a comment
Comment Information
Free Case Evaluation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Subscribe to this blog's feed FindLaw Network
Marrs & Terry | Personalized, Efficient Counsel | Office Locations

Ann Arbor Office
Marrs & Terry, PLLC
6553 Jackson Road
Ann Arbor, MI 48103

Phone: 734-418-0365
Toll Free: 866-665-8095
Fax: 734-663-9973
Ann Arbor Law Office Map

Jackson Office
Marrs & Terry, PLLC
209 E. Washington, Suite 258
Jackson, MI 49201

Phone: 734-418-0365
Toll Free: 866-665-8095
Jackson Law Office

Credit Cards Accepted | VISA | MasterCard | American Express