Financial institutions have gotten more aggressive with regard to foreclosing on homes. The foreclosure rate jumped approximately 11% nationally in May of 2013. In more than 33 states, the foreclosures rates were higher in May of 2013 than earlier in the year.
Demand For Homes Increase
The demand for homes by prospective purchasers’ is increasing in the United States. This had led to an increase in the prices homes on the market are selling for. On an annualized basis, home prices increased more than 12% in April of 2013. This is the single largest gain in sales prices of homes since February of 2006.
Foreclosed Homes On The Market
Foreclosed homes taken back by banks and other financial institutions have been selling faster than in the past. Darren Bloomquest, the Vice President of Realty Trac, recently stated the flood of bank-owned homes entering the marketplace is bad news for home owners. “For homeowners who are current or own their own homes outright, this could slow down the recent rapid rise in home price appreciation, which could mean the value of their homes is not going up as quickly in the short term.”
Underwater Homes
As of March 2013, approximately 20% of all homes in the United States with a mortgage against them were underwater. Although there has been a decrease in the number of homes worth less than their mortgages, it is still an extremely high percentage of homes in the United States.
Foreclosed Homes
In May of 2013, approximately 39,000 homes were taken back by financial institutions in foreclosure proceedings. It is estimated more than 500,000 homes will be foreclosed and taken back by financial institutions in 2013. Although this is a very high number, it is still below the 617,000, taken back by financial institutions in foreclosure lawsuits in 2012.
