Monday, May 07, 2007

Real Estate Trends in Foreclosure Properties and Bank Sales - consumer sentiment

Real Estate Trends in Foreclosure Properties and Bank Sales - consumer sentiment

According to a Yahoo Real Estate survey conducted by Harris Interactive, one in five homeowners is concerned about the possibility of foreclosure.

Twenty-six percent who expressed concern said it was because the rate on their adjustable-rate mortgage increased, according to the survey.
Fifty-nine percent said they were concerned about their ability to make their mortgage payments due to unexpected expenses.
But 39% expressed concern about having too much debt to repay and 28% said they feared a disability would put them out of work, thus limiting their ability to pay on their mortgage. Freddie Mac also this week reported that unemployment and income losses were linked to fewer delinquencies on Freddie Mac-owned loans in 2006 than in previous years. Delinquencies caused by excessive borrower financial obligations, however, rose.

"The drop in job- and income-related delinquencies reflect the growth we've seen in payroll jobs, excluding the manufacturing sector, but the uptick in late payments due to excessive debt is potentially troubling because it is independent of economic trends and suggests some borrowers are having a harder time handling their financial obligations than in past years," Freddie Mac chief economist Frank Nothaft said in a news release.

It's grim news for those who find themselves in over their heads with mortgage debt. But homeowners not in danger of foreclosure should be OK, right?

Not so fast. Foreclosures have the ability to spell trouble for the neighborhoods in which they're located. They can drag down housing values for surrounding homes, and if left vacant, they can become targets for vandals. Read more about how to protect your home as foreclosures are on the rise and learn how to prevent mortgage trouble on this week's Real Estate page.
Of course, as Michael Yang, general manager of Yahoo Real Estate pointed out in a news release, "there are two sides to the foreclosure picture." The survey also found that 37% of all U.S. adults would be at least somewhat interested in buying a house in foreclosure.

Read more about real estate foreclosures

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829

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