Banks Clearing Foreclosure Backlogs August 14, 2010

Banks Working Off Foreclsoures Backlog

Banks and mortgage lenders continue to work off their backlog of foreclosures. RealtyTrac reports that over 325,000 properties has some kind of foreclosure activity against them in July. That’s up 4% over June, but down about 10% from last July.

These numbers are mixed, but the main point is that foreclosures are at high level and will stay there for some time. There are still a lot of ARM (Adjustable Rate Mortgages that will be coming due for rate increases and balloon payments over the next two to three years. So although these number may vary, the point is that they are very high and will continue to be high for the next several years.

The rate and number of foreclosures will vary widely, but in a market like the Daytona Beach and Ormond Beach homes market, the levels are high and will remain high for the next few years. That means plenty of buying opportunities as super prices.