Housing Market Could Worsen With Influx Of Foreclosed Homes

by San Antonio Attorney

The largest banks and lenders in the United States have continuously accumulated real estate properties, procuring an influx of foreclosed properties that may worsen the state of the housing market and develop an additional pull on the recovery of the nation’s economy.

To sum up, those financial institutions have over 872,000 houses due to the massive foreclosures, based on the data of RealtyTrac. On top of that, they are in the act of foreclosing on yet another 1 million homes and are also ready to repossess millions more in the coming years.

After 5 years of instability, the economist are now worried about the state of housing market as the glut of foreclosed homes would develop another vicious cycle of depressing home values due to the increasing number of distressed homes.  As the spring home buying season arrived, the prices of properties have been falling nationwide in the recent months. According to Moody’s Analytics chief economist Mark Zandi, this continues to be a burden on the banking system.

The economists have made an overall projection that lenders would be able to sell the foreclosed properties in around 3 years.  Consequently, the nationwide values of home may fall 5 % towards the end of the year, according to Moody’s. Areas that were hit the hardest might even take much longer to recoup.

Despite the fact that sales of real estate have picked up a little over the last weeks, lenders are still weighed down by the influx of foreclosures. Lenders in Atlanta are repossessing eight properties for every distressed property that is sold, based on the Realty Trac’s March data. Lenders in Minneapolis are repossessing at least six properties for every property that they have sold.

The figures of inflow and outflow of homes used to be one is to one before the housing market decline.

As the housing market continues to slide and more pressure is placed on the real estate market you could encounter some legal issues.  Contacting a San Antonio Real Estate Attorney is one of the best ways to help resolve legal issues.

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