RISMEDIA, June 5, 2007-More than two million homes will be foreclosed in the U.S. in the next two? and a half years, accounting for the highest number of foreclosures since the U.S. Savings and Loan Fraud scandal, according to a new forecast by Housing Predictor.
The forecast is based on an analysis of the nation’s largest 100 metropolitan real estate markets by researchers and journalists conducted over the last month. Housing Predictor.com forecasts more than 250 local housing markets futures in all 50 U.S. states and since its inception the Web site has maintained more than an 85% accuracy rating.
Housing Predictor details the foreclosure crisis in America, and reports about just how the sub-prime loan crisis is spreading into the conventional mortgage market. Foreclosures are at record levels in Michigan, Ohio, Minnesota, Nevada and Colorado. Other states that are experiencing the highest number of foreclosures include California, Alabama, Indiana, and Mississippi.
The forecast comes on the heels of the Center for Responsible Lending’s estimate that 2.2 million residences will be foreclosed over the same period as a result of fall out in the wake of the nation’s sub-prime lending crisis.
The fall out from the sub-prime meltdown, however, has not extended into all of the nation’s housing markets on a widespread scale, researchers found. Eighteen states local real estate markets are appreciating and an additional 10 states housing markets are showing signs of stabilizing. The near record level of foreclosures are occurring as a result of increases in adjustable rate mortgages, and unethical lending practices on the part of some mortgage borrowers and lenders.
Researchers determined that the highest number of foreclosures are occurring in mortgages made to sub-prime borrowers, who obtained mortgages at higher interest rates as a result of poor credit histories and in two other areas of home lending. A breakdown is included in the Housing Predictor report.
Energized by low interest rates and liberalized lending standards, the nation’s housing market appreciated at record levels in many markets for nearly five years only to come to a slow down in some areas.
Mortgages made to first time investors are also experiencing a high rate of foreclosures. In March the U.S. Commerce Department said that vacant privately owned homes had reached their highest peak in the nation’s history. Many home buyers purchased properties in hopes of making a quick profit by selling the property to a new buyer before the market reached its peak, and are now unable to rent or sell their properties.
For more information, visit http://www.HousingPredictor.com.
