Home prices could drop 10 percent on foreclosures

Filed under: AM Roundup |

Homes long held in reserve by the foreclosure process will be going to auction soon – and because of deterioration, some analysts believe that the prices for those homes will drop 10 percent.

Sales of repossessed properties will increase by 25 percent this year nationwide, according to Moody’s Analytics.

The increase in foreclosure auction stems from the federal investigation into processes by banks who foreclosed on properties. Often held for more than two years, the properties will need upgrades and improvements, affecting their sales values, according to Bloomberg News.

Read more at Bloomberg News.