Foreclosures reached record heights in 2010. Almost 26 percent of residential sales in the U.S. were foreclosures in 2010, with the average sales price of these properties 28 percent less than those that weren't in the foreclosure process. Although the entire nation faced the foreclosure wrath, metro areas in particular were the hardest hit, with California, Nevada, Florida, and Arizona home to 19 of the top 20 foreclosure cities in the country.
It was a buyer's market like never before in recent times. Although there were plenty of repossessions, there were also a record number of home buyers at foreclosure sales. Foreclosures were sold at rock-bottom prices and they provided a fantastic opportunity for first-time homebuyers and investors. Private and institutional investors from Europe and other parts of the world flocked to the U.S. in great numbers to cash in on the new "gold rush."
In early 2010 foreclosures seemed to slow down. This turned out to be a smoke screen caused by government policies that were designed to apply the brakes on foreclosures. These policies added more funds to foreclosure education programs and gave lenders incentives to provide loan modifications and refinancing for troubled home owners. Experts said these new policies just stalled foreclosures in the short term.
Foreclosures in the first quarter of 2010 were 35 percent higher than in 2009. By summer, more homes in the U.S. were seized by lenders than in any three-month stretch since the housing market began to go downhill in 2006. Fourth quarter foreclosure sales were pressured because the home-buyer tax credit expired and also because of the robo-signing controversy.
Experts are expecting foreclosures to climb even higher in 2011. Some say the statistics for foreclosures in 2011 are going to look very similar to those filed in 2010.
It was a buyer's market like never before in recent times. Although there were plenty of repossessions, there were also a record number of home buyers at foreclosure sales. Foreclosures were sold at rock-bottom prices and they provided a fantastic opportunity for first-time homebuyers and investors. Private and institutional investors from Europe and other parts of the world flocked to the U.S. in great numbers to cash in on the new "gold rush."
In early 2010 foreclosures seemed to slow down. This turned out to be a smoke screen caused by government policies that were designed to apply the brakes on foreclosures. These policies added more funds to foreclosure education programs and gave lenders incentives to provide loan modifications and refinancing for troubled home owners. Experts said these new policies just stalled foreclosures in the short term.
Foreclosures in the first quarter of 2010 were 35 percent higher than in 2009. By summer, more homes in the U.S. were seized by lenders than in any three-month stretch since the housing market began to go downhill in 2006. Fourth quarter foreclosure sales were pressured because the home-buyer tax credit expired and also because of the robo-signing controversy.
Experts are expecting foreclosures to climb even higher in 2011. Some say the statistics for foreclosures in 2011 are going to look very similar to those filed in 2010.
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