Foreclosure decrease indicates unpromising future for the market

Foreclosure decrease indicates unpromising future for the market

In the first half of this year, foreclosure files have decreased both locally and nationally, but this doesn’t necessarily mean that the market is recovering. Across the country from January to June, foreclosures decreased 30%. The number of foreclosures was the lowest in the second season of this year since the end of 2007.

However, such a drop in foreclosures doesn’t necessarily indicate a better economic situation. It does, however, speak about the prolonged process of foreclosure. In fact, as a result of the delayed process of foreclosure, most foreclosure actions that should be done this year, may be postponed to next year 2012, which means we still need to worry about the future of the housing market.

It is suspected that such a drop in foreclosures resulted from a joint effort of banks in holding back their progress. The “shadow market”, in which vacant properties owned by banks have not been listed for sale, grew a year ago, and some companies even rushed to deceptive foreclosures. However, such holding back caused by bank-imposed moratoriums seems to be ended now, and now, banks are holding back because of the expiration of government’s homebuyer tax credit.

If you have more questions about foreclosure and short sales, please contact Housing Assistant of America,, 1-888-877- 0078.

Housing Assist Coldwellbanker