Nashua, NH (PRWEB) April 19, 2007
ForeclosuresNH.com, NH's primary foreclosure reporting service reported a 95% increase in foreclosures from Q1-2006 (639) to Q1-2007 (1247). The increase in foreclosures in the state is a result of homeowners who took advantage of subprime loans offered by predatory lenders. These lenders maxed homeowners' equity (between 90%-100%) when home values were high (2 - 3 years ago) and falsified household income to obtain the lowest, short-term rate possible. Fast-forward to today, the low rates are expiring and adjusting to today's rate and the new mortgage payments are more than homeowners can afford. They are also facing a market with soaring inventories; where home values have decreased, buyers are in control, and the market is stagnant. This is bad news for homeowners because their equity was maxed when home values were high and even if they attempted to sell for what was owed on the property, the price is still too high in today's market. Today's homebuyers are very particular in what they want and in the price they will pay, leaving limited options for homeowners.
Lenders are starting to utilize Realtors to short sell properties to avoid foreclosure because it costs them $10 - $20k to foreclose on a property. This trend should become more mainstream as the summer months will bring a wave of new properties in default, further compounding the excess inventories we are currently seeing.
James Kenney, president of ForeclosuresNH.com, predicts that due to the subprime loan fallout, homeowners will be forced to find alternate means of housing. "Based on our numbers (average increase of 7% per month), we believe that there will be a continued increase in foreclosures through the end of the year with insiders seeing the biggest increase during the summer. As a result of the imminent housing situation, we predict that there will be an increase in apartment rentals, condo sales and mobile home sales in the state," says James Kenney. "Rentals, condos, and mobile homes will be on the rise because it is an inexpensive alternative in an overpriced market. Never mind the fact that homeowners, that have been through foreclosure, may either not qualify for financing or not want to take on another high priced mortgage payment."
ForeclosuresNH provides detailed foreclosure and REO listings that are updated daily. We give our subscribers a distinct advantage in the NH foreclosure market by providing them with the resources necessary to be successful. We pride ourselves in not only providing accurate foreclosure data but also a support network for our subscribers, regardless of their experience.