According to this morning’s RealtyTrac February 2010 U.S. Foreclosure Market Report, 308,524 properties were foreclosed in February. This represents a 2% decrease from January, but still a 6% increase over February 2009. One in every 419 homes received a foreclosure notice in February. Although the rate has increased for 50 straight months, it is the slowest rate of growth in year-over-year foreclosures since 2006.
James J. Saccacio, chief executive officer of RealtyTrac commented: “This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure, but rather that foreclosure prevention programs, legislation and other processing delays are in effect capping monthly foreclosure activity — albeit at a historically high level that will likely continue for an extended period.”
While foreclosures still represent a serious risk to the recovery of the housing market, this is a promising sign that the market is moving in a positive direction. It is also worth noting that a bulk of the foreclosure activity is occurring in a few locations. According to the RealtyTrac report, California, Florida, Michigan, Arizona, Illinois, and Texas represent 60% of the total foreclosures in the country.
Foreclosures drag down the property values of neighboring properties and depress home prices generally by increasing the supply of homes on the market. However, they also represent an opportunity for bargain seekers. Those looking for fixer-uppers can often get a great deal on a foreclosed home and get easy financing with an FHA 203(k) renovation mortgage.
For people who are looking to make a long-term investment in a home, now is an excellent time to get in near the bottom of the market. Current mortgage rates are still near their historical low, home values appear to be stabilizing in many parts of the country, and the government is giving out tax credits for homebuyers until the end of April. If you are looking to make an investment in your future, call us today at 877-868-2503 to discuss your options.
What do you think about declining foreclosure rates? Join in the discussion below.
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