When the US housing Market crashed in 2007, record numbers of US real estate properties defaulted on their mortgage payments resulting in the initiation of US foreclosures. This left millions of Americans without homes as banks struggled to get liquidity back and the US government stepping in to prevent a catastrophic collapse of the US financial system.
Foreclosure Statistics
Based on available data, there were almost three million properties that received foreclosure notices in 2010 alone. These numbers represent a two percent increase from the previous year and would have been much higher if the lending institutions did not receive enough public outcry due to questionable real estate foreclosure practices such as the robosigning scandal that brought about more government oversight on how these proceedings are dealt with.
The Process of Foreclosure
When a homeowner is unable to pay monthly mortgage obligations to the bank, they receive a notice of default. Every US state has their own regulations about how long they have to pay before the bank seizes the property, but it is usually up to ninety days. If the property owner still cannot make their payment, a Notice of Trustee sale is then sent where a court date is docketed for public bidding of the foreclosed property.
Effect on Home Values
The housing market crash brought about a significant decline on home values everywhere from Las Vegas real estate all the way to Fort Lauderdale real estate. Many people saw their long-term investment properties fail. Bloomberg reported a decline of about 33% in home prices from the peak of the market in 2006.
Foreclosure Forecas
Based on analysis done by Bloomberg, it is expected that six million US real estate properties would face foreclosure proceedings by 2013. The reason for this is that they are anticipating about five million bad loans that have yet to enter the foreclosure phase. The only way to stop this catastrophe is for property owners to find some avenue to restructure their mortgage and produce timely payments, or sell them to potential investors but at a fraction of their value.
Areas Hardest Hit
Based on available data collected from 2006 to 2010, the state of Nevada had the highest number of homeowners that have succumbed to foreclosure proceedings. The statistics are pretty grim with one in every eleven filing as of 2010. Nevada is followed by the states of Arizona, Florida, and California.
What This Means for Canadians Buying US Real Estate
For Canadians buying US real estate, the present economic mood in the country is providing lucrative opportunities for investment. The weak dollar combined with a strong Canadian currency along with fire sale prices in many prime US states, means many Canadians can flock south of the border to easily snap up properties that were worth millions of dollars a few years ago but are now at a more competitive price range.
For Canadians looking to take advantage of this unique opportunity in the US, it is recommended that they work closely with an experienced real estate agent in the area they are interested in. It is worthy to note that Canadians looking for US financing could be in for a difficult time because of regulations. It may be easier to get financing in Canada instead.
To know more about US Foreclosures and how you can invest in these properties click on the link below.
Foreclosure Statistics
Based on available data, there were almost three million properties that received foreclosure notices in 2010 alone. These numbers represent a two percent increase from the previous year and would have been much higher if the lending institutions did not receive enough public outcry due to questionable real estate foreclosure practices such as the robosigning scandal that brought about more government oversight on how these proceedings are dealt with.
The Process of Foreclosure
When a homeowner is unable to pay monthly mortgage obligations to the bank, they receive a notice of default. Every US state has their own regulations about how long they have to pay before the bank seizes the property, but it is usually up to ninety days. If the property owner still cannot make their payment, a Notice of Trustee sale is then sent where a court date is docketed for public bidding of the foreclosed property.
Effect on Home Values
The housing market crash brought about a significant decline on home values everywhere from Las Vegas real estate all the way to Fort Lauderdale real estate. Many people saw their long-term investment properties fail. Bloomberg reported a decline of about 33% in home prices from the peak of the market in 2006.
Foreclosure Forecas
Based on analysis done by Bloomberg, it is expected that six million US real estate properties would face foreclosure proceedings by 2013. The reason for this is that they are anticipating about five million bad loans that have yet to enter the foreclosure phase. The only way to stop this catastrophe is for property owners to find some avenue to restructure their mortgage and produce timely payments, or sell them to potential investors but at a fraction of their value.
Areas Hardest Hit
Based on available data collected from 2006 to 2010, the state of Nevada had the highest number of homeowners that have succumbed to foreclosure proceedings. The statistics are pretty grim with one in every eleven filing as of 2010. Nevada is followed by the states of Arizona, Florida, and California.
What This Means for Canadians Buying US Real Estate
For Canadians buying US real estate, the present economic mood in the country is providing lucrative opportunities for investment. The weak dollar combined with a strong Canadian currency along with fire sale prices in many prime US states, means many Canadians can flock south of the border to easily snap up properties that were worth millions of dollars a few years ago but are now at a more competitive price range.
For Canadians looking to take advantage of this unique opportunity in the US, it is recommended that they work closely with an experienced real estate agent in the area they are interested in. It is worthy to note that Canadians looking for US financing could be in for a difficult time because of regulations. It may be easier to get financing in Canada instead.
To know more about US Foreclosures and how you can invest in these properties click on the link below.
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