Although there is constantly good news about the housing market in the United States, that doesn’t mean that the good news is going to get infinitely better forever. In many states, like California, the number of foreclosures is plummeting while home prices are skyrocketing. While home sales are dipping a little bit, there’s a lot to be excited about in the upcoming year in the real estate world. But, some researchers are suggesting that the number of foreclosures could start seeing an increase in the near future. There are a number of reasons for this, but it’s not actually as bad as one might expect.
Indeed, foreclosures are likely to increase, only because lenders are more confident that they can move those properties. The number of distressed homes right now is relatively low and sales are not doing that great. If you look at Matt Battiata reviews, you’ll see all kinds of happy customers buying and/or selling their homes, but you won’t find too many people going through foreclosure. But, as banks start to gain confidence in the market again, they may be more willing to pursue foreclosure proceedings in 2014. This is obviously a negative for the homeowner, but it may be sign that the housing market is on level footing again.
Back during the housing crisis, lenders had more foreclosures than they could handle. There were properties sitting vacant or with homeowners who hadn’t made a payment in months. The market was bone dry and few people were looking for homes (and especially distressed properties). The amount of foreclosure auctions dried up and the banks had little or no incentive to try to foreclose on homes that they couldn’t sell anyway. They were really bogged down without anywhere to go.
In fact, the situation became so dire, that lenders were allowing homeowners to live in their distressed properties for months at a time. Even if the lender wanted to evict the current occupants, they were liable for the upkeep of the property. So, it made more sense to let people live in their homes so they wouldn’t be penalized for overgrowth. Of course, this was a far worse time for both homeowners and banks, and things are starting to look a lot brighter going into 2014. Just look at a few Matt Battiata reviews to see the turnaround in the housing market going into this year.
Now that banks feel more comfortable with the housing market, the amount of foreclosures could rise. Although most people take an increase in foreclosures as a sign that the housing market is stumbling, a new increase in foreclosures in 2014 might indicate the opposite. As long as those properties are being quickly resold for a better value, then the housing market is actually looking up. Of course, it’s never the goal of anyone to enter into foreclosure proceedings, but, now that the lenders feel comfortable doing so, foreclosures may be on the rise. In states like California, new laws took effect at the beginning of 2014 that were meant to curb the amount of foreclosures statewide. We’ll see how things play out in California and throughout the nation in this coming year.