Sunday, January 25, 2009
Flood of foreclosures
By: Xavier Guerrero
The United States is currently facing many problems: the sub prime problem, mortgaging problems, and as of late, one problem has been underestimated and under measured: Foreclosures. In 2008, banks took back around 860,000 homes, which was more than twice than 2007, and the number of homes that are currently filing for foreclosure has hit a high of 3.1 million. This flood of foreclosures may be positive for those who have taken advantage of the current housing prices for their personal benefits, but the amount of houses under bank possessions only helps to increment the problem of there being more supply than demand in the housing market. To worsen the situation, new reports are informing that one third of the houses that are filing for foreclosures aren’t listed in foreclosure databases. In conclusion, the housing market will only see a greater supply of houses being foreclosured, which will inevitably lower the price of the other houses already owned by banks, not helping to stimulate the economy and only creating a larger deficit, and since banks are being slow at listing the repossessed homes in their databases, the whole scope of the problem will only be able to be seen entirely in the grim future that is to come for the housing market.
For more information on the problem of delay time on houses appearing in databases, click on the link: