Home Prices Seen Dropping 10% in U.S. on Foreclosures: Mortgages

Home Prices Seen Dropping 10% in U.S. on Foreclosures: Mortgages

As many as 1.25 million of America’s least cared for homes are headed for auction after a year-long probe into foreclosure practices kept them off the market.

Sales of repossessed properties probably will rise 25 percent this year from 1 million in 2011, according to Moody’s Analytics Inc. Prices for the homes could drop as much as 10 percent because they deteriorated as they were held in reserve during investigations by state officials resolved in February, according to RealtyTrac Inc. That month, 43 percent of foreclosures were delinquent for two or more years, from a 21 percent share in 2010, according to Lender Processing Services Inc. in Jacksonville, Florida.

“The longer a foreclosed home is in the mill, the bigger the losses,” said Todd Sherer, who manages distressed mortgage investments for Dalton Investments LLC, a Los Angeles-based hedge fund that oversees $1.5 billion. “We have a bulge of these properties coming through the system.”

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5 Responses to “Home Prices Seen Dropping 10% in U.S. on Foreclosures: Mortgages”
  1. Roy Conelly says:

    I hope dropping of prices of these forclosed homes will continue til next year. And I hope that the government will also see to it that proper budget for maintenance of these forclosed homes be considered. Thanks!

  2. Poof says:

    The price of housing dropping no way,that is not what the lamestream media was saying 3 weeks ago !

  3. Sarah says:

    Truly bizarre article, in that the occupants in these homes, whoever they may be, are totally ignored as if they are invisible. Instead outside entities are sizing up ’em up. making assumptions, but again the foreclose(ee) isn’t human.
    Victims do in fact take care of the homes, they might be in foreclosure for reasons other than simply a lack of money, since the time of default may have been in the past. Banks/FIRE sector don’t care about actually housing anyone, they are profit parasites.

  4. stripes says:

    Let’s face it, this was all about sucking the value out of everything we worked hard and paid for. These crooks don’t care because they didn’t pay for anything. All the banks did was swap credit slips and oversell investments in nothing to investors. To accept a dime less than what we paid is robbery. Making payments on property that is worth less than we are paying for it is robbery also. The property taxes are also way out of line with the property values. An attorney told me a while ago the property values are never coming back to the bubble price because that was all manufactured fraud.

    • neidermeyer says:

      Oh yes we will definately get back to the “bubble price” , please don’t confuse price with value ,, the banksters are accelerating their purchases of real property in front of the biggest bubble of all , buying all they can while prices are cheap and we have high unemployment and taxes putting a lid on inflation and growth, the collapse of the US Dollar is coming and they are trading soon to be worthless dollars for real things.. My house will be “worth” what it sold for in 2007 in just a year or two ,, maybe much less … The trouble is that a loaf of bread will also be $400K.

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