Bank repossessions on record height in Houston

Foreclosure Support published a new report regarding the second quarter foreclosure market analysis. According to the latest report bank repossessions hit the highest level since the crisis began, reaching the number of 269,962 properties. This figure is up 5% from the first quarter and 38% from the second quarter of 2009.

John Clark, Foreclosure Support business analyst commented the report, but he pointed out carefully the difference between bank repossessions and new foreclosures.

"Bank repos occur after a home has been in foreclosure for some time," Clark said. "After the homeowner’s allotted time to pay off the debt runs out, the banks start repossessing."

This is the final stage of foreclosure. The foreclosure process is a longer process, and now with the loan refinancing and modifications programs many properties avoided repossession for longer than usual. Now these time periods have expired and the banks began their repossessions. This is behind these numbers that show a very high repossession number.

Experts believe that this is a good signal for foreclosure investors as banks dealing with surplus inventories we be looking to unload, even if this means a lower return.

"It’s certainly a great time to look into buying back owned homes," said Clark. "With so many bank repos on the books, I wouldn’t be surprised to see some startlingly low prices. The problems behind the foreclosure crisis are still there, and there will still be plenty of new homes on the foreclosure market."

However, the other reports show a rising number of notices of default, the first stage of foreclosure. The list is lead by Nevada, which saw a total of 10% in foreclosure increase.

Posted by Istvan Fekete on Aug 20 2010. Filed under Foreclosures. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.