Market Conditions in 19460>Question Details

Barbara Q., Other/Just Looking in Bergen County, NJ

When will the foreclosures end?

Asked by Barbara Q., Bergen County, NJ Fri Jun 11, 2010

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8
Unfortunately, I don't see foreclosures ending any time soon.
The problem is just too big to get a handle on.
Everyday more people are surrendering their homes or selling short sale.
Banks are adding to the problem in taking so long to respond to home owners efforts
to modify their exsiting loans.
0 votes Thank Flag Link Thu Mar 8, 2012
We have actually seen a decrease in the number of distressed homes sold in Northern Arizona as reported by Arizona Daily Sun. The median home price rose by a little over 30k. I don't think it is quite over in my area yet but, lets think optimistic and hope the market continues to improve. As the banks are being ever so careful about lending now the overall market should slowly recover. Most likely not to what we saw 3-5 years ago but, more realistically improve.

Andy Grannan
Flagstaff Real Estate Professional
"Results through Performance"
928.699.1931
Russ Lyon Sotheby's International
0 votes Thank Flag Link Mon Jun 14, 2010
The bad mortgages go through 2012. It takes a bit over a year for the average foreclosure to foreclose now. That is 2013. Add in 1-4 years of extra inventory and you have the answer.

The one extra wrinkle that could add to that is unemployment. If it continues for years and years (some think it could easily) that could add more foreclosures into the mix that are not expected now for many years to come.
0 votes Thank Flag Link Fri Jun 11, 2010
It probably will take a while for the banks to work through all the potential foreclosures. An AP article indicated that the banks may actually be showing some restraint because they do not want to drive prices down further. I applaud them for this! However, this may mean that it will take longer to work through the backlog. The link to the article is below.

Best,
Ron
0 votes Thank Flag Link Fri Jun 11, 2010
Ok Don....I'll take the "over" on your prediction.

I'm going to go on record by saying the end of May 2014. My opinion is that the housing market is not going to be a "V" shape curve. I feel that it's going to be a bathtub shape recovery. And the housing recovery is going to be directly tied to the job/unemployment rate (which I don't think is going to get any better till the beginning of 2013).

Darin
0 votes Thank Flag Link Fri Jun 11, 2010
Foreclosures will never end. Financial problems have and always will occur. Whether they are caused by problems which can or can not be controlled. And the way to significantly reduce to number of foreclosures is to ensure that:

- People can clearly afford the payments.
- Have enough down payment for the property. (Sure, you have those which go FHA and VA. Then just refer back to the first statement.
- That their credit is at least 650. Anything under this means that they can't manage their funds properly.
- Must be prepared to do all the required work and upkeep.


Yes, there are programs to help people get into homes (much much scarcer now). Yet that does not mean those people SHOULD be able to get a home. Home ownership means a lot of work and upkeep. Some people can't deal with that and their home gets run down and the value decreases.

Home ownership is definitely not for everyone and everyone needs to know that.

Terrence Charest
0 votes Thank Flag Link Fri Jun 11, 2010
What some people forget is that there were always foreclosures. Certainly not as many as today, but even in "good times" there was a steady flow of foreclosures. So, from that perspective, they'll never end.

If you mean--as I assume you do--when will this massive wave of foreclosures return to the trickle it was a decade or so ago, then my guess is about 2013. Let's say June 2013.

Why don't you keep a record of the guesses/estimates in response to your question, then come back when the market has stabilized and let us know how we all did?

Hope that helps.
0 votes Thank Flag Link Fri Jun 11, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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I think it is going to be quite awhile. There are so many distressed properties. I don't see the government doing much more as far as bail outs, etc. My guess would be a couple of years. I hope I am wrong.
0 votes Thank Flag Link Fri Jun 11, 2010
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