San Diego, CA (PRWEB) March 30, 2014
Foreclosure levels are slowly but surely getting lower, and while this is good news for the recovery of the U.S. housing market it can actually be a pretty mixed blessing for new home buyers in the year ahead. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A new article posted on the website continues to help home loan borrowers by explaining how foreclosure market trends in 2014 will likely affect their home buying options.
This new foreclosure forecast guide explains, “As 2013 drew to a close, real estate market forecasters from coast to coast were making bold predictions of an anticipated marked decrease in distressed properties. The first couple of months of 2014 would seem to support those assumptions. U.S. foreclosure filings in February dropped to the lowest level experienced in over seven years, a figure 10 percent lower than the month prior. Foreclosure numbers have continued to follow a downward trend since peaking in 2010 at 1.05 million.”
Loan Love continues by explaining, “The wildcard in the whole foreclosure game is the number of properties still lingering on the edge of foreclosure, begging the question of which way they will tip. Much like foreclosed properties, these “properties in limbo” can depress the value of surrounding homes and contribute to a cloud of uncertainty hanging over communities that might otherwise have made it further down the path of recovery. Despite the positive signs, it is still too early in the game to consider the housing market back to “normal,” however you might define “normal” these days. But the market is clearly continuing its steady pace in the right direction as appreciation moderates, negative equity situations begin to right themselves, and foreclosures slow.
How does this all affect those planning to purchase a new home in 2014? LoanLove.com explains that the decrease in foreclosures means that home prices and equity will be on the rise. This is good news, because it means that those who have homes will see the values of their homes increase in time, if the recovery continues as it has. However, fewer foreclosures also means fewer distressed properties for sale. Distressed properties are usually sold at much lower prices than houses that are sold by owners who have not defaulted on their mortgages. Fortunately, there are still opportunities for buyers to find foreclosures and short sales. Loan Love says,
“Despite national foreclosure figures hitting historic lows, 10 states still saw foreclosures increase last year:
- New Jersey
- New York
In addition, scheduled foreclosure auctions in judicial process states reportedly reached the highest levels in three years.”
For more information on foreclosure predictions in 2014, click here to read the full article at LoanLove.com.