Just this April, around 342,000 homes did not avoid foreclosure notices. The number continues to rise, from March’s 340,000, as the Fannie Mae and Freddie Mac moratorium that was put into effect late 2008 and early 2009 proves to be ineffective. Their delaying tactics did not help a lot to avoid foreclosure.
Last March, the President planned a $75 billion worth of incentive to urge mortgage companies to modify loans and help nine million homeowners avoid foreclosure. But according to the number of April’s foreclosure filings banks are not really considering the offer. They may not be taking the President’s incentive plan seriously.
A RealtyTrac representative said that they have never seen foreclosure filings at this volume in two consecutive months.
This increase in foreclosure filing must have been anticipated after the moratorium is lifted. Besides that, Obama’s incentive strategy only affects Fannie Mae and Freddie Mac loans, or those guaranteed by either. Have they missed the thought that majority of those who can not avoid foreclosure have subprime loans or mortgages that do not abide by Fannie Mae or Freddie Mac’s standards? Hopefully, they’ll see this point.
The number of repossessed homes last April did decrease to 63,000, but we must expect a jump as foreclosure filings and proceeding begin to flood again. The increasing number of foreclosed homes will then be back to the market on very affordable prices, pulling median home prices with them. The cycle will have another turn.
During this year’s first quarter, home sales dropped countrywide except for six foreclosure-rich and short sale-ruled states: Virginia, Minnesota, Nevada, Florida, California and Arizona.
Nevada homes still take the lead for the highest foreclosure rate with one per 68 homes with a foreclosure filing. That is even down by 18 percent of March’s numbers. Florida came in second with one in every 135 homes who cannot avoid foreclosure notices. California came in third with a close one in every 138 homes facing foreclosure.
Las Vegas leads among the cities with most foreclosures at one in every 56 homes with a filing. Cape Coral-Fort Myers tails in second with one in every 57 homes not avoiding foreclosure filings. Bakersfield, Stockton, Vallejo- Fairfield, Riverside- San Bernardino, Modesto and Merced California also have high foreclosure rates along with Miami and Orlando Florida.