RealtyTrac Inc., reported on Thursday that 2.8 million homes, a new record, received a foreclosure-related notice in 2009. The number was a 21% increase over 2008 and represented approximately one out of every 45 homes in the U.S. Luckily, the same report indicated that foreclosure-related notices were actually down in 2009 for Tennessee.
A foreclosure-related notice is any notice given during a foreclosure process, so it includes notices in the early stages of foreclosure that are received before a home actually goes into foreclosure. While some of these notices did not result in actual foreclosure, the number does indicate that a record number of Americans are having trouble making mortgage payments. While it comes as no surprise that we set a new record, it doesn't appear that our troubles are over yet.
The number of notices appeared to decrease as the year went on, likely an indication that government efforts to prevent foreclosures may have had some effect. The federal Making Home Affordable Program ("HAMP")loan modifications are attributed with that success. However, as I have mentioned before, most of the HAMP "successes" have been temporary modifications. Over 750,000 mortgages have been modified on a trial basis under HAMP, but as of November, only 31,000 mortgages have been permanently modified.
With the temporary status of most of the loan modifications and the continued weakness in the economy, RealtyTrac still anticipates another 3 million to 3.5 million homes to enter some phase of foreclosure in 2010. If you find yourself in this position, I would encourage you to check out all of your options as early as possible in the process.
