An article on Forbes.com reports a grim outlook for 2011 in regard to the foreclosure crisis. According to industry analysts, lenders are in position to repossess more homes in 2011 than any other year since 2006. Approximately 5 million borrowers are at least two months behind on mortgage payments, and it is forecasted that more will find themselves behind on payments.
A new report by RealtyTrac, a business that tracks foreclosures in the United States, found that over a million homes were repossessed by banks last year. About one in 45 households in the U.S. received a foreclosure filing in 2010, which amounts to around 2.9 million homes. This statistic is an increase of 1.67 percent from 2009. However, foreclosure activity slowed at the end of 2010. In December, 257,747 homes in the nation received at least one notice that was foreclosure-related, the lowest monthly total for the past 30 months. The amount of foreclosure notices fell about 1.8 percent from November. The slow pace was caused by allegations that banks were not handling evictions properly. Also, since the banks were under increased scrutiny, many major lenders temporarily ceased taking action against borrowers who were behind on mortgage payments.
Nevertheless, most banks are resuming their eviction and foreclosure processes, and experts believe that the beginning of 2011 will see a dramatic increase in foreclosure activity. RealtyTrac predicts that over 1.2 million homes will be repossessed by lenders in 2011. The states that are expected to be hit the hardest are Arizona, California, Florida, Illinois, Michigan, and Nevada.
If you are behind on your mortgage payments and believe foreclosure may be in your future, it could be a wise decision to consult with a foreclosure specialist, such as an attorney, to learn what legal options are available. At The Law Offices of Robert Manchel, our lawyers can help you understand the complex foreclosure process and advise you on the best course of action based on your circumstances. Call 866-503-5655 today.