• 09
  • December
    2011

Georgia lenders are still facing an unfortunate amount defaults on real property loans. As you are likely aware, the real estate foreclosure process can be complicated and time consuming. Fortunately, the Federal Reserve Bank of Atlanta had some promising news to report regarding the percentage of distressed real estate loans in the region.

According to reports, the percentage of certain real estate loans that are distressed, was lower in the third quarter of this year than it was last year. The largest drop was among those loans that were distressed for 90 days or more.

The drop occurred across the states include Sixth District of the Federal Reserve which includes Georgia. The decrease was seen among residential first-lien, subprime loans. Of the six states in this district, Georgia saw the biggest dropped in the percentage of distressed loans of this type, from 54% during the third quarter of last year, to 36% for the most recent quarter.

Georgia has been the recipient of hundreds of millions of dollars from various government funds and programs aimed at helping homeowners avoid foreclosure. But despite these efforts, Atlanta is still facing a high percentage of distressed loans. The percentage of distressed mortgages in Atlanta has been above the national avergage since 2000.

Hopefully, this news bodes well for the future of the economic recovery. The high rate of default for both commercial and residential properties is still troubling but an improved economic climate may not be that far off.

Source: Housing Wire "Distressed subprime mortgages tumble in Southeast: Atlanta Fed" JUSTIN T. HILLEY, Dec. 7, 2011