Archive for 'Washington Dc'

As the nation strived to overcome the hurdles brought about by the mess in the housing sector, the foreclosure rate of Washington DC seem to be moving at warp speed. In fact a year to year analysis report showed that the region currently has the fastest growing rate in terms of foreclosure.

Eighteen months ago, foreclosure in this area was unheard of. But as the subprime market collapsed due to predatory lending practices, Washington found itself with thousands of foreclosure filings. Statewide, the number of foreclosure filings per 10,000 homes has jumped to 131 from 23. Nationwide, the average filing increased to 87 from 58.

For most local experts, the foreclosure situation in Washington has not yet hit rock bottom. They are expecting more and more homes entering some stage of foreclosure in the coming months especially with the rising cost of living and declining home prices.

Dealing with the current issue at hand might involve collective efforts from state officials, non-profit organizations and lenders. Troubled homeowners are also encouraged to seek help and not simply let the lender repossess their properties.

Struggling homeowners actually have several options they could explore in order to avoid foreclosure. Most of the options involve negotiating with their lenders in order to change some, if not all, of the mortgage terms in order to make payments more manageable.

Another popular option is to do a short sale. Of course, this option will require approval by the lender. Typically, a short sale transaction involves the sale of the property at an amount that is not sufficient to cover the mortgage debt.

The lender, in this case, agrees to forgive the difference. This option allows the homeowner to avoid foreclosure while the lender saves a considerable amount in foreclosure costs. But, keep in mind that there will be some additional taxes for this transaction since the IRS will consider the forgiven debt as taxable income.

Washington D.C. continues to feel the strong impact of the nationwide housing situation, as new studies report that the area saw a staggering 90% increase in foreclosure in January of 2008 from one month earlier.

This statistic becomes even more serious when compared with other regions during the same month. For example, the Chicago area saw a 3% drop in their rate of foreclosure, while the Michigan market saw a nearly 8% drop in foreclosures registered during the first month of the year.

This could spell trouble for the Washington D.C. area, but could mean big things for those interested in investing in its foreclosure inventory. Experts have pointed to a new generation of adjustable rate mortgages set to go into periods of rate adjustment during 2008 as reason to believe that this upcoming year may be the worst ever for foreclosures. In Washington D.C., this may be quite true, while other areas may have taken steps to combat their rising rates of foreclosure as well.

It’s also important to keeping mind however that Washington D.C. is in essence a large urban area with no suburbs or rural areas. Since foreclosures have hit hardest in urban areas, this could be another reason why the region’s statistics are so inflated—there are no other areas, as in most states, where foreclosure rates are relatively low. When compared with other cities, Washington D.C.’s foreclosure rate is fairly standard for the times.

Investing in the right kinds of Washington D.C. foreclosures could be very lucrative, provided you’re willing to hold out until the market begins to come around again. Right now, the flooded foreclosures market has prices on foreclosure property way down, so if you buy in affluent areas where properties have the potential to have value in the future, you could get some great deals.

Related Links:

• Washington Foreclosure Homes
• Washington DC Foreclosure Homes
• Foreclosures