The outlook in the housing market obviously varies from one official or organization to the next but many have a bleak forecast when it comes to foreclosures in the coming months and even years as predictions often surround numbers in the hundreds of thousands or more who may continue to face foreclosure over time. Obviously, there are also some negative opinions being seen in the area of home prices as predictions also indicate that values may continue to decrease, and until areas of the economy like housing and jobs begin to improve, but there remains some who are concerned over whether homebuyers may be more plentiful in a manner that will help absorb these foreclosed properties.
If indeed there are more homeowners who are facing the loss of their home, some financial institutions may begin to implement more mortgage assistance programs or, in some cases, officials and governmental agencies may continue to make changes in existing programs to help men and women avoid the loss of their home. Obviously, financial distress has led to a great deal of problems in the housing market, particularly in the area of homeowners who cannot pay their mortgage but it does seem that with so many homes sitting empty at the present time, adding to this inventory could be more problematic in terms of depressing home values further.
Understandably, not all homeowners who are struggling will be able to qualify for a mortgage assistance program nor does is always mean that homeowners can benefit when a program is in place, but changes to certain initiatives and tweaks to federal programs are hoped to provide more benefits for homeowners struggling to avoid foreclosure, as there are alternatives to foreclosure like short sale options that have helped some, but there are still homeowners who want to avoid the loss of their home altogether.
Yet, homeowners who are in a position where they may lose their home might find that, as a result of financial setbacks, it could lead to a longer time frame between the loss of their home and when they can reenter the housing market, which again could be a hindrance when it comes to absorbing inventory in the housing market, particularly foreclosed properties. While opinions on this topic often differ, some argue that banks may benefit more from keeping homeowners in their property versus allowing the home to go into foreclosure, as there may not be enough buyers in the coming months or years to keep pace with the number of foreclosures being seen.
Again though, there are instances where banks do stand to benefit more from foreclosing a property then continuing to offer aid to a homeowner, but with modification programs in place, short sale opportunities that may help transition one homeowner into a property while another exits, as well as proprietary plans that have been offered directly from banks, even if foreclosures do remain a problem for quite some time, homeowners are still in a position to potentially save their home from foreclosure with the use of these assistance plans.