Reports increase in failing loans

Bank of America Recent Stock Performance

Bank of America Recent Stock Performance

Foreclosure and mortgage troubles are becoming a fact of life for more homeowners in Raleigh than I had expected when this mess started. Bank of America, one of the largest mortgage lenders in the Raleigh area, has reported 15% increase in nonperforming loans, leases and foreclosed properties in 2nd qtr 2010 over last year.

Last month Freddie Mac reports showed short sales increased 600% compared to 2008.

About 20% of the residential property transactions in the Raleigh market are short sales and foreclosures. The biggest problem we are seeing in Raleigh stems from loss of employment or underemployment. I don’t think we had a big problem with Option ARM loans here in our market. Those loans appear to have been more popular in markets where prices were so high that folks needed them to qualify. Raleigh housing was more affordable compared to boom markets in other parts of the country.

If you bought your home in 2007, ’08 or ,’09 and you are selling now that you will be bringing some money to close.

It’s getting better but we still have a ways to go. If you are thinking of waiting a year to sell hoping to make more money the only sure thing is uncertainty. Be sure to consider losing a chance to buy with currently low mortgage rates.