Commercial and Bank Owned Foreclosure Will Go On Rising

by on Foreclosure Rates

Industry experts said that commercial and bank owned foreclosure will continue to increase and dominate the real estate market in various regions in the country. Reports were recently released that supported this claim.

In Washington County, Utah, the foreclosure rate in the region remains higher than the national rate. A report about the region showed that a total of 3,747 bank owned foreclosure filings were posted from June of last year to May of this year. The figures represented an average percentage of 10.27 foreclosures daily.

In South Florida, which is also one of the regions hardest hit by the foreclosure crisis, lenders filed over 52,000 property repossessions in the first half of this year. And a report from Condo Vulture LLC is anticipating that foreclosure filings in the region will reach over 100,000 before the end of this year.

The same report explained that filings for bank owned foreclosures are increasing at a pace of almost 2,200 every week. Meanwhile, the report noted that the number of resale homes on South Florida market is declining at nearly 900 every week.

Business analyst James Foxx explained that the rising number of foreclosure properties may be a bane to homeowners, but it is a boon for homebuyers. He said that the increasing foreclosure in the country has resulted to more foreclosure properties on the market which are available for sale at deep discounts. He added that both investors and first-time homebuyers can now purchase foreclosed homes priced below their market values.

On the other hand, commercial foreclosure is also on the rise. A report about the commercial real estate market stated that commercial foreclosure activity rose by 12 percent from January to July of this year, compared to the previous year.

In New Jersey, the number of commercial foreclosure continues to soar the second quarter of this year, representing an increase three times that of last year for the same period.

The biggest concern in the commercial real estate is the performance of the retail market nationwide. So far, the total value of commercial bank owned foreclosures reached $31 billion. And the numbers keep on piling up every month.