CNBC just reported that we had record foreclosure filings in 2010 at 2.9 Million.  That is up 2% from 2009 and up 23% from 2008.  Remember how bad we thought 2008 was??  Wow, 2010 was 23% worse in terms of foreclosure filings.  The real estate market and our home values will not get better anytime soon, why?  Let me give you my thoughts.

It is predicted that 2011 will continue with a record # of foreclosures.  I know, I know.. how can this be, unemployment is going down, everyone is saying we are out of the recession, consumer confidence and retail sales were positive over the holidays... 

 If you are not following real estate closely and trying to figure it out, let me help.  The banks got caught last year with very poor foreclosure systems and were accidentally foreclosing on properties that shouldn't have been foreclosed on.  This caught the governments attention.. and as they reviewed the banks procedures and paperwork, they realized that banks were not reviewing every file closely and getting proper signatures.. forms were basicallyh get signed without review, thus the 'robo-signing'.  Several of the large banks agreed to halt the foreclosures until they got their systems fixed and could review and properly document and sign off on each foreclosure. 

What does this mean?  Well the last quarter of 2010, the majority of foreclosures were stopped, creating a huge backlog of foreclosures coming in 2011.  I personally go the foreclosure sales monthly, sometimes weekly.  I would estimate in Hamilty Couty alone, about 40% to 50% of the foreclosure sales did not happen and were cancelled. 

It is estimated by RealtyTrac that the robo-signing issue will be fixed and the banks will begin releasing these properties back to the foreclosure sale by the end of the 1Q 2011, adding additional REO sales in communities, which will continue driving down prices.

It is still a great market to be an Investor or a Buyer.. or a Seller, as long as you are a Buyer too.  Take a hit on your current home, but get a bargain on your new home. 

Derek Gutting, The Gutting Group, Keller Williams Realty, www.GuttingGroup.com.