Home Foreclosures Causing Hard Time for Home Builders

New home builders are having a hard time these days, and many of them say the reason is that they can’t compete with the number of foreclosed homes on the marketing. Bob Jones, a home builder and the president of the National Association of Home Builders states:

The continual flow of distressed properties priced below the cost of production is having an adverse effect on new-home appraisals and also making it tough for builders’ customers to sell their existing homes . . .

More Home Foreclosures Coming Soon

A financial expert in the same article noted that in the coming months more home foreclosures are going to hit the market. This depresses already sagging home values, making it more difficult for existing homeowners to sell. And the Obama administration’s prevent foreclosure program, is not helping many homeonwers who want to modify their existing mortgages so that they can hang onto their homes.

What it all amounts to is one big mess that continues to plague homeonwers, whether they’re trying to sell, want to modify their existing mortgages or who just want to see the value return to homes they’ve worked so hard to maintain.

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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.