According to an article in the Dallas Morning News, the number of homes sold at foreclosure auctions has declined by 17 percent; but the number of homes succumbing to foreclosure continues to rise. So far, foreclosure posting rose by 35 percent compared with 2008; but many homes remain in foreclosure limbo while homeowners fight to get mortgage modifications.
The article said:
"The lenders are continuing to post but not taking the homes back because they are in the process of modifying the loans," said George Roddy, president of Foreclosure Listing Service. "For several months, we had foreclosure moratoriums called by Fannie Mae and Freddie Mac," the two big government-owned mortgage companies. During the first six months of the year, only about 30 percent of homes posted for foreclosure were actually auctioned by the lender. Typically, more than 40 percent of monthly foreclosure filings result in a forced sale."
But many analysts fear that even if homeowners are able to avoid foreclosure in the short-term using mortgage modification, we may still see a tsunami of foreclosures in 2010 as more homeowners face job losses. Also, it isn't totally clear how effective the mortgage modification program will be over the long-term. Recent studies have revealed that many homeowners eventually lose their homes to foreclosure even with mortgage modification because the modified loans still are not affordable.
As homeowners consider mortgage modification, they need to work with a professional to make sure that their modified loan is affordable. If a homeowner finds that a mortgage modification is not affordable or attainable, they may want to consider their bankruptcy options. Bankruptcy can stop foreclosure and help you keep your home.