Latest June Figures Show Increase in US Foreclosures
26 July 2011
According to figures from RealtyTrac, there was a 4% increase in foreclosure filings, bank repossessions and auction sale notices compared to May. However the good news is that year-on-year, foreclosures are down by 29% and Rick Sharga, vice president of marketing for RealtyTrac, thinks the increase in foreclosures could be due to an increase in home sales, which is prompting banks to be more aggressive about foreclosure filings.
A recent report showed that house prices in the US fell by 3.2% during the first half of this year, and it's predicted they will drop by another 2.4% during the remaining six months, which could lead to fewer homeowners be able to keep their homes.
Foreclosures are quite complex, and it's just about impossible for the average consumer to make sense of the documents without expert legal help, and one law firm, Brookstone Law has set up a new department which enables homeowners to talk to a solicitor without incurring costly fees. They only have to pay if the law firm is able to stop foreclosure proceedings and save that persons home.
Paul Dales, senior US economist for Capital Economics thinks that house prices in the US will drop by 3% during the second half of this year. He then predicts that prices will have bottomed out, but thinks the market will stagnate. It appears likely that the banks will do everything to protect their profit margins, and are not concerned about the needs of consumers during the worst recession since the great depression.