The Latest Housing Market Figures

While March saw a slight increase in foreclosure numbers, the downward foreclosure trend is expected to dominate the real estate market. In fact, statistics show that foreclosures are down a staggering 52-percent since reaching their all-time peak in 2010. Nationwide, markets saw 55,000 foreclosures in March and 52,000 in February, which is down from 66,000 in March 2012. Since the foreclosure crisis hit the U.S. in fall of 2008, the real estate market has seen approximately 4.2 million foreclosures nationwide.

The states experiencing the highest foreclosure rates include Florida, California and Michigan. The current foreclosure inventory shows approximately 1.1 million homes. While this number is overwhelming, it is down 23-percent from a year ago, and is expected to continually decline. The foreclosure inventory is approximately 2.8-percent and March saw a consecutive 17-month decline in foreclosures.

Why are foreclosure and short sales decreasing? Many experts believe it is impart due to government intervention. The government and banking industries have steadily promoted a number of foreclosure alternatives, including short sales, loan modifications, second-lien extinguishments and other debt relief options. So while foreclosures are down, there are still a number of distressed homeowners that have not gotten to the foreclosure process, but are trying to work with banks to allow some sort of relief or forgiveness.

However, house hunters feeling the pain of lagging available housing may be in for a surprise. The U.S. Department of Housing and Urban Development has announced it will be releasing additional HUD-owned homes to the public real estate market. Experts predict that over the next two years, the HUD market will increase. Lenders are still working through a major backlog of foreclosure reviews and foreclosures, which means that HUD homes are a welcome relief to a market with minimal listings.

The real estate inventory is there, but it’s simply being held up in yellow bureaucratic tape, which may mean that the latest housing numbers are not completely accurate. HUD loans are backed by the federal government, meaning that they guarantee if the homebuyer defaults, they will pay off the entire mortgage, gain interest in the deed and re-sell the home. This process can be lengthy, which is why there is a backup of HUD homes that are soon to be released.

HUD homes are often appealing with price, but may be in poor condition. This can be a double-edge sword, meaning that many of these homes will not qualify for traditional bank financing. This is where the benefit of Better Than Loans comes into play. As a hard money lender they offer fast money lending, helping people fix up a home and then apply for conventional financing at low interest rates. Better Than Loans can be a long-term loan option or simply one for short-term needs, helping provide valuable working capital for home improvements.

Categories: Hard Money Loans

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