More repossessed properties are stated by home loan companies than ever before

The dismal saga of the real estate industry in America continues, and despite the occasional bright spot, there is nevertheless plenty of bad news to go around. The homebuyer tax credit took any upticks in sales with it. The government had that loan modification program, however it was not as effective as hoped. Banks can skip house foreclosures, and simply repossess residences when owners default on their bank loans. In fact, repossessions increased by 25 percent since last year.

Repossession more well-known than Lady Gaga

Repossessions are steadily increasing. Since 2009, they have exploded. Repossessions are happening at a greater rate than ever before, as outlined by RealtyTrac. There were a lot of them in August, according to Bloomberg. There were 95,364 people whose residences were repossessed. RealtyTrac has never recorded that large a number of repossessed houses in its existence. That is lots of people thrown out of lots of houses. Since August of 2009, repossessions increased 25 percent.

Property foreclosures lower

Don’t despair entirely. There is good news. Overall foreclosure and default notices decreased by 5 percent since July of this year. Take that with a grain of salt, though. Repossession and foreclosures are a bit different. House foreclosures are part of a legal proceeding. Banks have to serve notice and fill out lots of paperwork. A homeowner in default, if the home gets sold, is responsible for making up the difference in purchase price, should the home be sold for a loss. Repossessions are different. There are less legal hang ups, and less paperwork. The homeowner is simply kicked out and the home is resold.

Foreclosure supply at all time high

You will find a lot of foreclosed houses available at rock bottom prices.

You cannot buy a house with a cash advance. But if you can get the financing, you are able to make a killing. At the moment, 1 in 381 properties is in foreclosure.

Additional reading

Bloomberg

bloomberg.com/news/2010-09-16/bank-seizures-of-u-s-homes-reach-record-for-the-third-time-in-five-months.html