Commercial mortgages could be the next wave of delinquencies and foreclosures in the real estate market. An article published in Bloomberg in January 2017 estimates that about $90 billion in debt will come due in the next year. Much of this debt was created during the 2007 real estate boom and will need to be refinanced or otherwise dealt with by companies across the U.S.

Retail Properties Likely to Be Hardest Hit

The waning popularity of shopping malls and reduced interest by anchor companies has led to the failure of many of these large-scale retail properties nationwide. A number of retail properties are simply failing to generate the expected income. This can make it difficult for property owners to manage the costs of these retail sites and may lead to delinquency even before these loans mature.

Refinancing Harder to Find

The reduced profitability of commercial property combined with the tighter money market have made it more difficult for borrowers to refinance their current loans. If refinancing arrangements can not be found, commercial property owners may be left with no alternative to delinquency, default and foreclosure.

Prices May Be on Their Way Down

The expected increase in commercial foreclosures will present new opportunities for investors in this sector. Businesses looking for additional space for their operations and companies eager to get in on the ground floor of new retail expansions may find bargains in the commercial real estate marketplace. This will likely lead to increased demand for commercial title searches and closing services in the upcoming year.

National Title Insurance and Search Solutions from Acuity

The title insurance and title search specialists at Acuity National Real Estate Solutions can provide cutting-edge solutions for real estate agents and lenders to ensure the smoothest transfer of property. We handle escrow funds and closings to help you manage your sales more effectively. Call us today at 502-238-7500 to discuss your needs with one of our professional staff members. We look forward to working with you.

Foreclosure inventories are still in decline across the U.S. According to the CoreLogic National Foreclosure Report for November 2016, the number of foreclosures available in the real estate market went down more than 25 percent between November 2015 and November 2016. This points to a recovery in the housing market and an overall improvement for the economy as a whole.

Less than One Percent of Homes in Foreclosure Inventory

The November 2016 figures indicate that 325,000 foreclosed homes were available in the real estate market at that time, which represents less than one percent of all homes in the U.S. In November 2015, approximately 1.2 percent of all homes were considered to be foreclosure inventory and available for purchase.

Defaults and Delinquencies in Decline

As the inventory of foreclosed homes continues to fall, the number of new serious delinquencies and defaults has also decreased nationwide. The National Foreclosure Report indicated that about 2.5 percent of all mortgages were in serious delinquency or default status in November 2016, the lowest number since the start of the subprime mortgage crisis in August 2007.

Some States Hit Harder than Others

For the 12-month period covered by the CoreLogic report, Florida reported the highest number of foreclosures at approximately 48,000. Michigan, Texas, Ohio and Georgia rounded out the top five states in terms of completed foreclosure proceedings. The District of Columbia reported the fewest at 221 total completed foreclosures.

Home Prices on the Rise

CoreLogic also indicated that the overall value of homes is continuing to rise. This appreciation is providing added support for the economy and allowing homeowners to enjoy greater flexibility in managing their financial affairs, making future foreclosures less likely.

The experts at Acuity National Real Estate Solutions can provide professional title services to help clients close on their properties more quickly. We have the experience and the expertise to manage your transactions accurately and to your precise requirements. Visit our homepage or contact us today at 502-238-7500 to learn more about our full lineup of services and to schedule a consultation with our team. We look forward to the chance to serve your residential and commercial real estate needs.