US foreclosures market 'set to grow'

The US foreclosures market could see new growth as unemployment continues to rise in the US, it has been predicted.

More people out of work could mean a rise in the number who cannot meet their mortgage payments and thus lose their homes, noted Reuters.

Economist Christopher Thornberg of Beacon Economics told the news agency this could have the effect of lowering property prices overall after a recent recovery in values.

He said: "Is there a chance for a double dip in home prices after this next surge of foreclosures hits the market? Absolutely."

Such a situation could favour those seeking bargain property deals in the country.

The US department of the Treasury has revealed that it expands its trial loan modifications scheme from the start of next month under its Making Home Affordable programme to assist homeowners to stay in their residences and avoid foreclosure.

It had already set a target of issuing 500,000 loans by the start of November.

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