Compared to June of last year, the rate of foreclosures nationwide grew by 53%. It seems as though one out of every 501 homeowners found themselves in a financial situation they couldn’t get out of.
The combination of weak housing sales, fallinghome values, tighter lending criteria, and a slow US economy have left many homeowners in a situation where they can’t find a buyer for their home, own more than their home is worth, or simply can’t refinance into a more affordable loan.
While the news is a bit grim, lawmakers are working on providing some relief. Congress is working on legislation that would allow the Federal Housing Administration to provide cheaper home financing to distressed homeowners who would otherwise have a difficult time refinancing. The Bush administration also announced on Tuesday that it would soon be ready to implement an FHA expansion that lets borrowers who’ve fallen behind on their home payments get more affordable loans.
Needless to say, the financial picture isn’t getting any rosier. Fortunately for us in the Rock Hill SC and Fort Mill SC area, the housing market remains strong compared to other areas of the country. We’re still being impacted by the difficulties of other areas because of the inability of many to sell their current homes, but overall the real estate market here remains very active.
You can read a full account of this report HERE.
