Home Prices May Fall as Foreclosures Resume

It looks like home prices are going to fall again as banks get ready to foreclose on millions of homes that have had their foreclosures delayed due to a one-year government investigation into mortgage lending practices.

Due to the predicted increase in foreclosures, home prices are expected to drop after having been stable for the last six months in coastal cities. Cities like Cleveland, Detroit, Las Vegas, and Phoenix have not fared quite so well in recent months and are currently at their lowest price points since the housing bust began over four years ago.

People interested in buying new homes are holding off because they believe that prices will continue to drop. Others are unable to qualify for loans or to meet the increased requirements for down payments. Even people with good credit are sometimes having trouble qualifying for new homes. Foreclosure has left a terrible mark on the housing market. This is evidenced by the fact that short sales made up 30% of all home sales over the last month, an increase of about 10% over past years.

Have questions about foreclosure or hoping to stop foreclosure? Contact Bizar & Doyle, LLC now to learn what options you may have by speaking with one of our Chicago bankruptcy attorneys.