The United States Department of Housing and Urban Development has begun selling off seriously delinquent loans. In an effort to avoid the short fall and bailout that could happen next year, thousands of loans are being sold, according to a report on AOL Real Estate.
This could be a windfall for those whose loans are sold, for many could be modified to avoid foreclosure. The plans is to sell at least 30,000 loans. This represents just a sliver of the nearly 700,000 seriously delinquent loans on their books.
Officials would not specify how they would select the loans. Only seriously delinquent would qualify, but no specific information was given.
This indicates we are still far from being out of this housing crisis. There are many great things happening in the market, but we are not out of the woods yet.
Be on the look out over the next year for big Wall Street firms to begin buying up single family home foreclosures. They will buy them and then rent them out. There are already investors out there looking to that as I am writing this.
By the Numbers (Dec. 1-16):
- Homes sold: 23
- Average days on market (homes sold): 151
- Units for sale: 255
- Months supply: 5.5 months