Foreclosure rates are on the decline, according to an article from money.cnn.com. The report indicates that foreclosures filings are near where they were before the housing bubble burst, and the situation should only get better for Brea real estate in the next year.
There are several factors that contribute to lower foreclosure rates, including an increase in short sales in the past few years. Short sales affect home owners’ credit less negatively than foreclosures, and thus are preferred by banks. Recently, however, the number of short sales are also declining as government programs such as the Home Affordable Refinance Program and the Home Affordable Modification Program help home owners find alternatives to foreclosure. A $25 billion deal was also made a year ago with state and federal officials that allowed mortgage lenders to lower home owners’ mortgage rates.
Studies show that foreclosure filings were down 23% in the first quarter of 2013 compared to the first quarter of 2012. Similarly, the number of repossessions in March of this year was more than 50% less than the number of repossessions in September 2010. Referring to the foreclosure rate, Daren Blomquist, Vice President at Realtytrac said, “We’re getting back to normal and will be there by next year.”
Blomquist also noted that while some people are still foreclosing, less are doing so because of diminishing home prices or high mortgage rates. In fact, home prices were up 8% at the beginning of this year compared to the beginning of 2012, further signaling a rebounding housing market.
There are so many reasons to consider Brea real estate. Please contact me to learn more about the many wonderful homes available in Brea. I’d love to show you around.