The number of bank foreclosures in the U.S. continues to increase in the month of April 2010, continuing a pattern that began in March when banks have started working on troubled loans contracts that they inevitably neglected during the second half of 2009. As banks rush the troubled mortgage issues in their books, the number of repossessed houses for April reached more than 92,000.
The April figure for repossession and foreclosure listings by state is only one percent higher than the figures recorded in March 2010; but compared with April 2009 numbers, it represents a 45% rise. Statistics showed that households facing foreclosures a year ago who were temporarily saved by government programs are now piling up to contribute to the huge increase in foreclosure rates.
Housing market observers have stated that real bank owned homes for sale numbers are now appearing following the failure of the government programs to provide a permanent solution to the foreclosure crisis. They added that the programs only delayed the inevitable and it has now caught up with the housing market all around the country.
Residential repossessions for the first four months of 2010 are up 27% compared with the same period of 2009. This trend is expected to continue for the next two years or so. Meanwhile, the number of households receiving loan default notices, the first step in the process of foreclosure, has somewhat leveled off and recorded a 12% decline during April compared with March. It also declined by 27% when compared with figures produced in April of the previous year.
According to real estate experts, the decline does not signal a decrease in the number of bank owned homes for sale. It just signifies that banks are more concerned about clearing their backlogs rather than creating new additions to their foreclosure books. Market experts further added that banks are trying to put their levels of inventory under control.
Economists, on the other hand, are worried that lenders and banks might get tempted to quickly put their bank foreclosures backlogs on the market, which could result in depressed housing prices in areas where recovery is starting to happen. Another possible scenario is for banks to gradually offer these foreclosed properties in the market for several years. The second possibility can shield the housing market from another rough year, but could drag the foreclosure problem for more years than necessary.
With the release of the April housing figures, market experts are predicting that the foreclosure crisis will not be ending soon. They added that banks and lenders are starting to add more foreclosed properties to nationwide records in such a pace that it is becoming impossible for foreclosure-prevention efforts to keep up with the rising numbers.
Market experts have also added that with more bank foreclosures starting to be part of the nationwide tally, the foreclosure crisis is being pushed into the future. This could mean, experts speculated, that the country will face at least an additional five years of housing crisis as more foreclosed properties are introduced into the market.
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