The 2010 Foreclosure Forecast Suggests That More Foreclosures are Coming

Online, June 25, 2010 (Newswire.com) - The loan modification industry is expected to become busier than ever as more foreclosures are expected to occur.

While the economy is nowhere near as bad as it was at an earlier point of the recession there are still concerns over how foreclosures are still occurring. The upcoming forecast for foreclosures in 2010 is proving to be worrisome. This forecast could even be seen as evidence of how more loan modification services could be used during the course of the year.

A recent Mortgage Bankers Association report suggests that there are plenty of people around the United States who are at risk of possibly going into foreclosure. Reports show that one of out every seven mortgages in the United States is one that is one month or greater behind in its payments. This data is important because when a person is behind on payments that person is more likely to end up going into foreclosure or at least falling further behind before resorting to loan modification assistance.

Home equity values have declined as well. Home equity is used as a means of helping to make sure that a person will be able to work with a good secured loan to take care of getting a mortgage paid off with each over time. However the recent financial crisis has caused equity values to decline. Reports suggest that the amount of equity that people in the United States has declined over the years from thirteen trillion dollars to approximately five trillion dollars. This is a massive decline that is making it harder for people to handle loans with.

Housing Predictor, a popular organization devoted to looking into housing markets around the United States and listing foreclosures, is suggesting that the number of foreclosures will increase. It is estimated that since the recession began more than four million homes have been foreclosed upon. However Housing Predictor is stating that at least ten million homes will be foreclosed upon by 2014.

There are many reasons as to why this forecast is being used. One of them comes from ongoing declines in home values. With home values going down people are finding that paying off their homes may not be worth it unless they get into loan modification programs.

Another comes from how the unemployment rate has not made too much of a change into a more favorable pattern. According to the United States Bureau of Labor Statistics the unemployment rate in the country as of February 2010 was 10.4%. This is compared to 8.9% from a year earlier and 5.2% from February 2008. This is even more serious for states like Michigan (14.1%), California (12.5%), Illinois (11.4%) and North Carolina (11.2%).

The 1st Foreclosure Prevention Company is a company that works to handle mortgage loans of people who are at risk of getting into foreclosure. The company deals with checking on vital documents for housing providers and works to see that a loan can be altered for one's general needs to make it easier to pay off a loan.