Repossessed properties by mortgage loan lenders climb

There is some good news every now again in real estate. Nevertheless, there is always some bad news to go with it. There were some upticks in sales. Those disappeared with the home buyer tax credit. Foreclosures were barely helped by the loan refinancing program from the government. Not only did few homeowners really have their bank loans and homes saved by the program, but repossessed properties have actually increased. In fact, repossessions increased by 25 percent since last year.

Foreclosure much more popular than Lady Gaga

Repossessions have been steadily increasing. Since 2009, they have exploded. According to a recent report by RealtyTrac, repossessions are higher than have been recorded since the economic recession began. There were a lot of them in August, as outlined by Bloomberg. There were 95,364 people whose homes were repossessed. RealtyTrac has not yet recorded numbers that bad. That is lots of people thrown out of lots of houses. Since August of 2009, repossessions increased 25 percent.

Less house foreclosures

Some good news did come out of this report. Since July, foreclosures decreased. So did notices of default. Due to the difference between repossessions and property foreclosures, that should be taken with a grain of salt. A foreclosure is when mortgage holders have fallen into default, and the financial institution begins a legal process to get them out of the homes. A homeowner in default, if the home gets sold, is responsible for making up the main difference in purchase price, should the home be sold for a loss. Repossessions are different. There are fewer lawful hang ups, and much less paperwork. The homeowner is simply kicked out and also the home is resold.

Foreclosure supply continually high

There is an incredible stockpile of accessible houses, some at discount prices.

You cannot purchase a house with a cash advance. But if you can get the financing, you can make a killing. About 1 in 381 homes is foreclosed on. These are not good numbers.

Additional reading

Bloomberg

bloomberg.com/news/2010-09-16/bank-seizures-of-u-s-homes-reach-record-for-the-third-time-in-five-months.html