Reports released here in the mid-parts of October have shown that foreclosures have increased over the past few months but are still lower than we saw this time last year, yet this does not necessarily point to good news for homeowners who are attempting to prevent foreclosure through various assistance opportunities. In fact there are some predictions that foreclosures will continue to increase in the coming months, which could cause a rise in the number of foreclosure prevention seekers looking into opportunities to make their home more affordable or simply improve on their financial position.
Some homeowners are in a position where they may be facing an inevitable foreclosure but due to setbacks that are being seen by some banks in the area of processing these foreclosures, some of the numbers and data we have seen in the past may have given a false impression that foreclosures were slowing down or may have been reduced. There are still some areas of the nation where the housing market is struggling to recover and banks still have a backlog of homes that are set to face foreclosure but the filings may not have begun in a timely manner, which again may have given the impression that homeowners might not be suffering from foreclosures as greatly as in the past.
However, foreclosures are still a problem and will likely continue as long-term levels of unemployment, which has currently remained stagnant at 9.1% nationally, have led some who are seeking income opportunities through jobs finding them difficult to acquire or there are also cases where some homeowners may have simply seen setbacks from which they have been unable to recover. Yet, no matter what the cause of the distress some homeowners are facing financially, there are few officials who believe that in the coming months foreclosures will begin to slow as a result of either backlogs being filed for foreclosure or homeowners finding themselves in a better financial position.
Homeowners are well aware in many cases of the foreclosure prevention plans that do exist, like federal modification programs and state-specific initiatives that may help homeowners meet their mortgage payment in a variety of ways, but there is also the case that some homeowners are simply seeing setbacks as a result of personal financial decisions that may have led to an excessive amount of debt. In cases where homeowners are seeking foreclosure prevention, aspects like unemployment, health care costs, or excessive debt obligations are to blame, but these assistance opportunities are still working to help prevent further losses as many banks are struggling to unload foreclosed properties. With these homes simply sitting empty in many housing markets across the nation, it has led to further problems like decreases in home values, which creates a new set of problems for homeowners that will need to be addressed in a different manner.