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Property News Wednesday 29th August 2007
July see huge rise in RepossessionsProperty firm RealtyTrac have released figures that show a 93% surge in home repossessions in the month of July compared to the same month last year with over 179 thousand foreclosure filings. They show a rise of 9% from June?s results, further deepening the woes experienced by the US housing industry. Borrowers with subprime loans have particularly felt the pinch.Home sales have also fallen despite decreasing prices and home owners have experienced problems trying to sell their property and clear debts. Job losses in the construction industry are a further indicator of problems in the mortgage market, that have driven a global credit slump. Consulting firm Challenger, Gray and Christmas said that over 87 thousand jobs have been lost so far this year in the housing industry, 41% of those are linked to the industry troubles. Almost a quarter of those cuts took place in August alone. As interest rates have risen, the housing bubble has burst and many subprime borrowers have defaulted on loans, many of those were given loans without providing paper evidence of their earnings. In many cases lenders have resold the debt and as a result many investment funds are experiencing serious issues, as investors do not currently know the scale of the problem. Many companies are said to be expecting the mortgage situation to implode. Other Property Recent News and ArticlesAnswering The Hard Questions About Property Options » Questions You Need to Ask Yourself if You Are a First Home Buyer » |
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