US homeowners at increased risk as pace of foreclosures rise
05 Apr 2012
Five years into the deepest US mortgage loan crisis, the problem has not ended for many American house owners. Across much of the country, house sales are improving, and the plunge in prices is slowing with attempts by lenders to claim back properties from struggling borrowers down over a third in 2011, hitting a four-year low.
However, a painful part two of the slump is expected to unfold with many more US homeowners facing the prospect of losing their homes this year as the pace of foreclosures picks up.
Mark Seifert, executive director of Empowering & Strengthening Ohio's People (ESOP), a counseling group, said he would be betting on 2012 being a bigger year for foreclosures than 2010.
He added that last year was an anomaly, and things have not shaped up in a good way.
The 2011 "robo-signing" scandal, which saw foreclosure documents signed without a proper review of individual cases, prompted banks to hold back on new foreclosures pending a settlement.
Five major banks finally settled with 49 US states in February and signs are growing that the pace of foreclosures was picking up again, something, which housing experts predict would weigh again on home prices before a sustained recovery set in.
.webp)
