More Foreclosures Expected in 2011

Brace yourself for another rough year in housing. The number of foreclosures is expected to increase in 2011 as more troubled mortgages work their way through the pipeline.

Next year could very well be a peak year for foreclosures, as the market is expected to tally about 1.2 million bank repossessions in 2010, with expectations even higher in 2011.

The forecast is partially due to issues the industry has faced with the robo-signing controversy that began in the fall and delayed a large portion of foreclosures from being completed this year, when lenders discovered procedures might not be in accordance with the law.

Continued high unemployment also is expected to exacerbate the foreclosure problem in the year ahead, as will recasting interest rates on adjustable-rate mortgages, which will increase monthly payments for some homeowners.