As an indicator of the status of the economy, the housing market is estimated to grow during the next year, according to reports from industry experts. Debt collectors should remain aware of debtors' financial and housing activity in the following months to ensure payments aren't being purposefully ignored.
The economy and housing market have seen stark declines in recent years. For stabilization and progression, there must be a balance in pricing and interest rates, as the current buyer's market has had substantial negative effects on the seller. Economist at FTN Financial Lindsey Piegza told Reuters that "… we are seeing stabilization, but unfortunately it's stability at the bottom … I think what we're likely to see is further eligibility for refinancing on the government balance sheets, so essentially more and more homeowners being able to take advantage of refinancing programs (and) loan modifications." If a homeowner or homebuyer gains financial aid or a refinanced mortgage, they can experience improved financial flexibility, which has a positive effect on the debt collection industry. As difficult as it is to collect debt from consumers, those who are in the process of buying homes or readjusting mortgages might prove even more burdensome. As a debt collector, you may need to make a decision whether to readjust a payment plan with the debtor or to pursue legal action in order to obtain the money that is rightfully yours. If a debtor hasn't paid their dues, yet recently acquired a home or placed a down payment, you may need to consider filing a complaint or bad credit report with through the appropriate channels. It's unfair to a debt collection agency to have consumers spend their money while purposefully refusing to pay. According to Moody's Analytics, the construction of single-family homes will increase by 37 percent during 2012, following a 9 percent fall last year. Home sales of existing properties will rise 12 percent and new home sales will increase by 74 percent during 2012. As increased activity in the housing market is expected, you should monitor your debtors' activity vigilantly during the next year and immediately report any housing activity if the debtor has failed to pay in the process.