208,078 New Listings - November 2009 - Last update November 20, 2009 12:30 PM EST 
Home Foreclosures Not Expect to Peak until Later This Year
Foreclosure filings have increased by fifty seven percent in the past year. Bank repossessions have risen to one hundred and twenty nine percent from last year as the mortgage crisis spreads.
Experts are saying the worst is still ahead of us as mortgage rates are “reset”. These mortgage resets mean that there will be an increase in homeowners who will be forced into foreclosure and default in the last quarters of this year.
Rick Sharga of RealtyTrac stated that what we are now seeing is fallout from poor loan products. He states that we will probably see a record number of foreclosures in the last quarters of 2008. His statement reflects the increase in monthly mortgage payments because of rate resets on subprime loans that will occur in May and June.
The number of homes in the United States that have received a foreclosure filing has risen to over two hundred thousand. This is fifty seven percent higher than last year’s filings. These filings include bank repossession, default notices, and auction notices.
Banks repossessed homes at a higher rate than last year as more and more homeowners gave up their homes. Nationwide, banks have repossessed over fifty one thousand homes. A lot of these repossessions took place without a foreclosure auction open to the public.
RealtyTrac estimates that there will be between seven hundred and fifty thousand and one million properties, owned by banks that will come on the market in 2008. This represents about twenty five percent of houses on the market. In some locations, these properties will weigh down sales of real-estate and keep down the prices of homes.
It is actually the drop in the prices in homes and lending guidelines that are stricter are the reason for the current credit crisis. Mortgage resets cause mortgage rates and monthly payments to go higher.
Usually, the owner of a home could refinance their home loan at a lower rate in order to bring mortgage payments down to a level they can manage. However, lenders are not quick to make these types of loans to begin with. In a lot of cases this is justified because some homes have dropped in value so much that that the equity in these homes is almost non-existent.
Homeowners can’t even sell their homes now with the current market because their homes are overpriced. There are many times that a homeowner will mail their house keys back to the bank and just leave.
The state of Nevada currently has the worst foreclosure rate. Most of the foreclosures in Nevada are non-judicial. This kind of foreclosure does not involve any interference from the court but it does require a “foreclosure by advertisement” notice. In Nevada, when a trust deed is first signed is includes something called the “Power of Sale Clause”. This clause allows trustees, in the case of default, to sell the home in order to satisfy the defaulted loans.
In Februrary, one out of every one hundred and thirty nine homes in the state of Nevada received a notice related to foreclosure. This is four times the national rate.
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