The Charlotte Observer reported foreclosures on the rise once again in the state of North Carolina.  Filings for the month of March as compared to a year ago were up 11 % across the state while filings in the Mecklenburg county area rose 40%. 

The slowdown we experienced over the last several months was in part due to the “moratorium” placed on foreclosures compliments of the government (Fannie Mae and Freddie Mac), the major banks and the new North Carolina law requiring lenders to give borrowers a 45 day notice before starting the foreclosure process.

What does this mean for you?  The rise in foreclosures continues to put pressure on the already battered housing market.  Why?…

• Foreclosures put price pressure on existing  homes because they typically sell well below market value. 
• Foreclosures usually are not in the greatest of shape (theory being if you can’t pay your mortgage you are probably not keeping the house up) and as such they can discourage potential buyers of existing homes from buying in that neighborhood.
• Foreclosures put more pressure on the already ailing banks which may force them to alter future lending practices.  This translates into tighter mortgage standards and less money for potential buyers.

Although this is not a good sign it is not a surprising one.  As I said in an earlier blog we are not out of the woods yet in real estate – but the bottom may very well be in sight.  Until then, if you need help or have questions about foreclosures in North Carolina please check out NC Foreclosure Help.

Ciao Bella