Like it or not more foreclosures are coming this year. This last wave will be the end of this real estate debacle. The overall difference with prior years is that it will hit the middle classes a little harder that before. We are starting to see an increase in inventory in areas that before had little to no activity. You can definitely see a jump in inventory in the higher end homes or what is traditionally referred to as "Jumbo Loans".
Most of these homes exceeded the $ 729,000 threshold set by the Obama loan modification plan, in fact they never had a rescue plan as they fell into the category of conventional loan not ARM's. There are thousands of homeowners that are being denied a modification or being offered such a ridiculous reduction that they have no other choice but to walk away. This is happing to all homeowners regardless of value.
Case in point. We know of one case that after almost a year of negotiation was offered an interest rate reduction of.12 basis points, for 5 years and then it returns to the original amount. Considering that the existing loan is $ 540,000 and the property is now valued at $ 370,000 walking away starts to make sense. There are many other homeowners that are in this same predicament and until all these issues get resolved we will continue to see an increase in inventory. We will undoubtedly see a disproportionate increase in short sales compared to regular REO'S
Luis Pezzini lpezzini@pezzini.info http://www.SunsetStripRealty.com Reo- Foreclosures Realtor Article Source: http://EzineArticles.com/?expert=Luis_Pezzini