More people lost their houses in 2010 than 2009

Raluca Coman

Written by Raluca Coman
Posted in: Featured, U.S. News
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More than 1 million American households will probably lose their homes to foreclosure this year.
Almost 528,000 homes were taken back by the lenders until the 1st of July, and if the numbers will be equal in the second semester that means that this year will overtake last year, when a total of 900,000 houses were taken back. And there would be even more homes lost if the banks would not let the bad paying borrowers stay longer in their homes rather than piling up foreclosed properties. The number of foreclosed households increased by 8 percent compared to the same period last year, but decreased by 5 percent compared to the last six months of 2009. About 1.7 million people received a foreclosure notice between January and June, which means that one in 78 American homes has already received a warning.

The banks are trying to manage for their selves the pacing of how fast the foreclosures are processed so that they can manage the number of the properties on the market and thus control their price. On average, the period of time in which a home goes from being 30 days late to the foreclosed and sold property is about 15 months, so the householders have sufficient time to try and pay the mortgage. A new wave of foreclosures could be coming in the second half of the year, provided that the unemployment rate remains high and the programs especially designed to help borrowers fail.11

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