The Housing Sector will soon be hit by a new wave of foreclosures

Numerous homeowners were given a holiday reprieve from repossession of their homes, but a new wave of foreclosures is anticipated to hit the housing sector within months.

RealtyTrac, a firm that tracks foreclosure sales, has stated that close to $4 million delinquent loans will soon be sent through the foreclosure pipeline again.

As banks have been required to revamp their foreclosure processing, they have gathered a significant backlog. Banks are poised to re-submit foreclosure documents, and courts will begin hearing cases.

James Saccacio, co-founder of RealtyTrac said, “November’s numbers suggest a new set of incoming foreclosure waves, many of which will roll into the market as REOs (bank repossessions) or short sales sometime early next year.”

Foreclosure auctions reached a nine-month high in November, while default notices, the first stage of foreclosure, reached a nine month high in August. Preventing home repossession is possible, but requires the expertise of a foreclosure attorney.

This new influx of repossessed homes will continue to suppress home prices unless investors snatch up properties quickly in order to take advantage of the growing rental market. Foreclosure starts outnumber home sales three to one.

Going from a home owner to a renter is an unpleasant prospect and the willing homeowner can fight to stay in their homes by enlisting a foreclosure lawyer. Delinquent homeowners have legal options available to them that can be explored by getting the advice of a foreclosure attorney.