Overall Foreclosures Situation Okay Despite Reports

by Simon Lindsay on General

For many months, news of increasing foreclosures rate have filled the mind many home owners, home buyers and real estate investors. The circus started more than a year ago, when interest rates of subprime mortgages began re-setting. In no time at all, thousands of home owners found themselves unable to pay their mortgage obligations. The rise in delinquency rate was staggering. At the end of 2006, more than one million owners have lost their home to bank foreclosures.

As the dust began to settle, the foreclosures activity slowed down in most states except for Nevada, Arizona, California and Florida. These states were hit the hardest and the considerable number of foreclosure filings in these places have somehow affected overall foreclosures situation. But if you do not consider these states, the nation is actually enjoying a low mortgage delinquency rate, according to the Mortgage Bankers Association. Compared to the last quarter of 2006, the number of delinquencies reported in the first three months of 2007 has dropped considerably.

Information on foreclosures activity based on per capita showed that the number of distressed properties, that is homes in pre-foreclosure stage, has actually doubled in the past year. However, it is important to pint out that these increases are being experienced by the states mentioned earlier and at least 24 states experienced a decline in the number of real estate foreclosures.

Of course, the market is still favoring the buyers as the number of foreclosure homes continue to rise. It is not unheard of that these buyers work with foreclosure brokers like Bank Foreclosures Sale in order to purchase the best properties sold at bargain prices. In the mean time, sellers would have to content them selves with lowering their asking prices if they want to sell these properties as soon as possible.