Was the End of 2009 Just the Beginning For Home Foreclosures?

Last year we kept hearing how the recession was over or almost over and things were going to look up at any moment. Well, 2009 came and went and we soon discovered that the recession was, in fact, not over. Cheapest Place To Buy A House Abroad The question now is not if millions of people are going to lose their homes-which millions already have-but what the final toll of homes in foreclosure is going to be when this economic is finally over.
Part of the problem was that many people across the nation lost their jobs last year or had their hours severely cut back, leaving them with smaller household incomes. The concern for the current year is that number of unemployed people across the US is still very high and may in fact continue to rise this year. This will continue to be a problem until not only the official unemployment rate changes for the better, but also the rate of under-employed people across the country.
Another problem is that the Federal Reserve program to buy mortgage-backed securities will be ending on March 31st of this year; this program has been helping to keep the interest rate on mortgages low. The program was quite a success and did, in fact, help keep interest rates down to much more appealing levels than we had seen in years for all of 2009.
Another issue looming on the horizon in 2010 is that many home owners who’ve been struggling to have their mortgages modified by the government Home Affordable Modification Program are not qualifying for the program. Reportedly, up to 7 million homeowners who’re behind on Stamp Duty When Selling A House their mortgage payments may yet lose their homes due to the way that the HAM program works at present. The delay of these homes entering the market may have suppressed foreclosure numbers for 2009 but will inevitably drive up the numbers of foreclosures in 2010. 
With this combination of factors in place, it is obvious that the numbers of foreclosures can only rise over this current year. Even if some of the government programs are continued, it is unlikely that they’ll be proactive enough to suppress the sheer volume of homes that are poised to enter the market as bank owned properties this year. Unfortunately, the only question that remains is if the market can effectively deal with the glut of foreclosures that it’s likely to see over the course of this next year.

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