Foreclosure risk rises as real estate market tries to repair itself
Posted on Friday, July 13, 2012 at 7:53:28 AM
American banks may soon be processing more foreclosures on delinquent homeowners. According to RealtyTrac, initial notices of foreclosure increased 6 percent in the second quarter of 2012 compared to the same time the previous year. In addition, this is the first increase the real estate industry has seen in initial foreclosure notices since 2009, Bloomberg Businessweek reports.
While this news may sound negative, real estate experts predict it will improve the overall state of the market. The strengthening real estate industry is currently better equipped to handle the initial fallout from foreclosures.
"The market has to deal with these distressed properties at some point and I believe we’ve delayed it long enough so seeing these increases isn’t necessarily a bad thing," RealtyTrac spokesman Daren Blomquist told the news source. "The market has strengthened and is more equipped to absorb this additional foreclosure inventory."
In addition, the positive momentum will allow potential homeowners to buy up foreclosed properties entering the market for affordable prices. Residential financing options will be available to individuals searching for a home in the stabilizing real estate market.