The current economic situation around the world means that many people are struggling with debts and many more are losing their homes. There is mixed news. On one hand house prices are rising.
Prices in the USA have rose in nearly 60 per cent of the cities in the first quarter of this year.
Buyer confidence is back and instead of people looking at new homes as an investment; home buyers have now got more long-term views. A buyer, nowadays, plans to stay in their home for 10 or more years so the flipping mentality seems to be a thing of the past and the majority of people are seeing housing as a shelter and a decent long-term investment.
Make no mistake; the housing market will continue to face challenges and obstacles, mainly from homeowners with negative equity and unemployment. Also, according to recent data that has been released by RealtyTrac, banks are repossessing more homes today than last they did last year.
In April this year, banks took possession of 92,432 homes. This figure is up by 1 per cent from March. and has increased 45 percent from April 2009. The fat that the federal programme to help home owners has now ended, millions more homeowners could be facing foreclosure.
If you are having trouble paying your mortgage you should talk to your lender as soon as you know you are having problems with repayments. You shouldn’t wait for a foreclosure to be started. Once a lender starts a foreclosure case in court, it will cost you more money to try and save your home. You may be able to work out a payment plan, depending on how bad your problem is. A mortgage modification that will avoid foreclosure may also be an option.