Categorized | Foreclosures

Foreclosure Filings Down, Expected to Surge

Posted on 12 February 2010 by Aaron Hofmann

Forecasts are coming in, that despite mortgage foreclosure filings in the country dropping in January, projecting  a surge in foreclosures due to the ongoing impact from unemployment rates and uncertainty over the economy.

One in every 409 U.S. housing units received a foreclosure filing in January, Irvine, California-based RealtyTrac said in its January 2010 U.S. Foreclosure Market Report.

Foreclosures are definitely the biggest threat U.S. housing market recovery.

Many lawmakers, advocacy groups and housing experts say the government’s Home Affordable Modification Program, or HAMP, has fallen short because of its failure to adequately address negative equity, or “underwater” mortgages.

Negative equity has been one of the biggest banes of many homeowners, making many unqualified for home loan refinancing and preventing some from selling their homes. Borrowers in negative equity are more prone to defaults and foreclosures.

Slowing the foreclosure rate is a key step in the recovery of the real estate market and the overall economy. The foreclosure crisis forced the federal government and several states to come up with plans to prevent or delay the process to help delinquent borrowers.

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