Atlanta Bank Foreclosures Already Surpassed 2008 Record

by on cities

The number of Atlanta bank foreclosures notices filed in the first 9 months of this year has already surpassed the total figures for last year. Industry experts said that the dramatic increase in the number of foreclosure filings indicated a deepening recession and unemployment problem.

And experts are anticipating more foreclosures before the year ends as unemployment benefits come to an end and the scheduled resetting of adjustable-rate mortgages (ARM). They projected about 116,905 properties will go into foreclosures before the year ends, an increase of 47 percent from the previous year.

Industry experts said that many distressed properties will not be sold at foreclosure auctions because their owners may be able to negotiate loan workouts with their lenders or make late payments which will allow them to remain on their houses.

However, the increasing number of Atlanta bank foreclosures is an indication of the worsening recession and is causing more woes and anxieties in the real estate and housing markets.

And adding to the problem is the growing number of delinquent commercial properties. Experts said that the problem in the residential real estate market is spilling over to the commercial property market.

The flood of foreclosures came into the market just as the country is starting to feel the impact of the recession and the financial crisis brought about by the collapse of subprime lending. The initial foreclosure problem was blamed on subprime lending and the impact was somehow confined on a certain group of homeowners, mostly those who took out high interest loans.

But the current wave of foreclosures is brought about by the rising unemployment which covers a wider range of homeowners.

In Atlanta, the highest number of foreclosure houses was reported in the counties of Cherokee, Cobb, Forsyth and Gwinnett. Experts said that the foreclosure problem in these areas reflect the deteriorating regional labor market and economy since 2008. The problem also indicated its continuing suburbanization and a drastic shift to properties with higher values.

At the current foreclosure pace, Fulton County, which has 18,631 distressed properties so far, is expected to end the year with over 35 percent foreclosures compared with last year. Similarly Gwinnett’s 17,132 foreclosures are on track to increase by 71 percent.