The Real Estate Professional

What most economists are only now hinting at is the “third wave” of foreclosures soon to be on their way. The first wave of foreclosures came from investors who simply walked away from homes they couldn’t afford. The second wave, which included many California foreclosures, was made up primarily of those who took out subprime loans. This coming third wave of foreclosures will be made up of people who have lived in their homes a long time, but who have been laid off or had their hours and income drastically cut. This third wave, quite a few of whom live in California, will hit the economy yet again, like a pile driver. People who have lived in their homes for five, ten or even fifteen years, people who had nothing to do with the subprime mortgage crisis, will be facing foreclosure and asking themselves what they can do to avoid losing their home. What they will inevitably come to discover, is that a loan modification program could be right for them. California loan modification professionals will be there to help people pick up the pieces when their homes begin to go through foreclosure. In fact, California loan modification attorneys are already planning on working many long hours helping those people who have lost their jobs and now face a grim reality. Dealing with the third wave of foreclosures, especially California foreclosures, will be a scary ordeal, especially for those who never expected to be in this position. What this means, is that read more

Driving South on Interstate 75 in Marietta, GA everyone on their way to work looks up to see the big realty company sign that tells how many listings are on the market, waiting to be sold.   The numbers have finally made it back in the 70,000 range which is what we used to call “normal” when referring to the then thriving Georgia Market.   We may be tempted to give a sigh of relief that things are finally returning to “normal,” but the numbers portray a false security.

May’s foreclosure statistics reported the third largest number in history of U. S. properties with foreclosure activity.   Although the number was down 6% from April, still 321,480 homes showed filings for foreclosure, notices of default, or were marked for auction and repossession.   May also was the third straight month of national foreclosures exceeding the 300,000 homes mark.   According to a report put out recently by RealtyTrac®, 1 in every 398 U. S. homes received a foreclosure filing in May.   Georgia is currently ranked 7th in properties with foreclosure filings.   In Georgia, 1 in every 377 homes is involved in foreclosure activity, a figure slightly under the national average.

Though there may seem to be signs of less homes on the market, and thus the return of a healthy, more stable real estate economy – the problem lies in the reality of a flood of foreclosures that has been dammed up by various state regulations and the Obama read more