foreclosure statistics

Foreclosure Statistics Updates

Understanding Foreclosure Statistic will enable you to make good home decisions.

Foreclosure statistics and figures which govern them are the weather vane of the US housing market and, by extension, the US economy which, as we have seen, now is closely linked to the world economy. Put simply what happens to home owners and potential home buyers in the US affects global communities everywhere.

At the moment Fannie Mae and Freddie Mac both have a moratorium on foreclosures and as they own fifty percent of the United States mortgages this is having a big positive effect, completely separate from the true underlying strength of the US housing market. Furthermore, some commercial banks have agreed to do this as well.

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Many banks are allowing consumers to change the terms of their mortgages, which can seriously hurt the banks balance sheets. The process is called Loss Mitigation and can affect the Credit Score of those who are involved in it by significantly lowering their points (see Foreclosure Credit to understand how Credit Scoring works). The temptation, always, is to either read too much or too little in foreclosure statistics and the number of foreclosed homes coming in the market. The fact is that the foreclosure mechanism is part of our system of doing business in a free real estate market economy and provided the numbers of foreclosed properties are reflective of the expected percentage of foreclosure properties which naturally come into foreclosure each year, there is not a lot to read into it at all which leads, quite naturally, to the interesting question of whether foreclosure statistics are of any use at all and the answer here is certainly. While it would be wrong to place a lot of weight on them it would also be wrong to discard them. Statistics have a way of acting as trend indicators. By normalizing seasonal and local fluctuations they show that any spikes of dips are actually representative of national trends which in themselves can reveal what else is happening in the foreclosure statistics economy at large.

Analyzing foreclosure statistics should always be part of your homework when you are thinking of a foreclosure property not least because it can help you understand what is happening in the real estate market you are thinking of buying in. So while foreclosure statistics are excellent at showing the trend in the number of foreclosures per state or per area and are a useful indicator of foreclosure sale trends and the numbers of foreclosure statistics which come into the market they have little bearing on your ability to find a great foreclose property to buy. Your foreclosure professional will be able to help you find what you need from foreclosure listings and will help make the whole process of buying a foreclosed property smooth and painless.