Home foreclosures have continued to drop off throughout the nation, according to a report released by Lender Processing Services Inc. This is excellent news for the housing market, yet not so good for real estate investors searching for diamonds in the rough.
In December, 3.44 percent of homes were going through the foreclosure process – almost an 18 percent decline from last year. These numbers are expected to decline even more in 2013, especially with the job market improving.
Fortunately, states hit hardest by the burst of the housing bubble are finally turning around. California’s foreclosure debacle, for example, is coming to a close. The Golden State is seeing the lowest level of home repossessions since 2006 – a 38 percent decline over the past three months.
Regulations and heightened scrutiny on banks has led to an increasing number of loan modification programs for those who aren’t able to make their mortgage payments, which has attributed to the drop in foreclosures. If the economy continues firing on all cylinders in 2013, there should be good things ahead.
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