According to real estate market experts, despite high numbers of Salt Lake City foreclosures for sale and distressed properties in various areas of Utah, the state is actually doing much better than other U.S. regions in terms of economic recovery. However, they warned that a potential housing problem is in the works, based mainly on the fact that in Salt Lake City alone, apartment vacancy rate currently stands at 5.3%.

Experts asserted that this percentage is a full point lower compared with the national average and signs prominently point to a further decline. This, market experts reveal, is leading to a potential shortage in housing. They also claimed that some would probably point out that there are tons of single family foreclosure homes in Utah available at low prices that residents can purchase, but they argued that the market has changed and people now are not looking for homes to buy since most of them would rather rent.

They further stated that if Utah wants to grow, then it needs to attract new populations, create new jobs and provide newcomers with places to live. Although affordable Handyman Specials and other residential properties are aplenty, these units are not exactly what people are currently looking for, experts have said. They emphasized the need for the state to address such problems if it wants to continue its growth.

Real estate analysts reported that, although foreclosed houses continue to be a drag on the residential property sector, the commercial property market is actually doing quite well, except for the retail real estate segment, which is lagging the national vacancy rate of 1.3%. The state's retail vacancy rate currently stands at 1.4%. Other segments like multifamily housing, industrial and office vacancies, on the other hand, are much lower compared with national averages.

Overall, analysts believe that despite having its own problems with foreclosed Handyman Specials and distressed real estate, Utah is doing good compared with the whole U.S. However, they did warn that the potential shortage in rental dwellings should be addressed and the job market should soon cover some of the eight million jobs that were lost during the national recession to fully recover from the economic downturn.

The number of Salt Lake City foreclosed homes and foreclosure-related filings in other areas of the state increased last month when compared with December 2010 figures. Statewide, figures for last month represented an increase of 8% compared with December. However, they also represented a 12% decline when held against January 2010 totals. The numbers include default notices, properties up for auctions and houses repossessed by lenders.

The total number of foreclosed homes in Utah was high enough to rank the state fifth among 50 U.S. states in terms of highest foreclosure rates. One household out of every 265 household units in the region was in some stage of foreclosure in January. The statewide ratio also remained higher than the one household out of every 500 units recorded at the national level. Only four other states performed worse than Utah last year, with Nevada retaining the top spot, followed by Arizona, California, and Florida.

Housing industry analysts reported that, nationwide, households that received their first lis pendens foreclosure filing, or those entering the foreclosure process for the fist time, dropped by 1% when compared with December of last year. When compared with January 2010, households receiving their first filing dropped by 27%. Data showed that properties up for auction sales also declined to their lowest total in two years.

Despite these seemingly positive figures, housing analysts stated that the number of home foreclosures this year will likely top last year's totals. They stated that a decline in overall filings and foreclosure auctions does not mean that the housing industry is getting better; it only means that lenders are being more thorough in processing foreclosures and have delayed taking actions against delinquent borrowers.

They also stated that the national decline in lis pendens foreclosure filings is only a reflection of the temporary halt on the processing and selling of foreclosed properties imposed during the fourth quarter by several banks. For the rest of 2011, majority of analysts predict an even worse performance for the housing industry than the previous year.

Just like the considerable decrease in national foreclosure homes rate, Utah experienced a whopping 21.51 percent drop from May and 34.80 percent from last year. Compared to states like Michigan and Ohio, Utah has more conservative lenders who adhered to strict lending guidelines. In the other states, there were many speculative investors who took out loans and then packed up when home prices fell. This resulted to record-high number of real estate foreclosures.

In Utah, lenders are more prone to approve loans taken out by borrowers who are planning to live in these properties. Because of such conservatism, these lenders have also managed to avoid making the mistake of offering to these borrowers housing loans with terms and conditions that they do not understand. On one hand, subprime borrowers were not tricked into getting mortgages they could never afford in the beginning.

During times like these — high cost of living, slow home appreciation rates and rising interest rates, owners who can no longer afford to pay their mortgage dues have the option to work out a new payment scheme with their lenders, sell their homes, consider taking out another loan, offer their lenders deed in lieu of foreclosure and even file for either a Chapter 7 or Chapter 13 bankruptcy. With several options available, these owners have a good chance of stopping foreclosure.

ForeclosureConnections.com can offer buyers with a wide selection of great Utah foreclosure homes to choose from. They can choose from single-family units, town homes and condominium units.

Still, it is not surprising that subprime mortgages are the ones at fault for the current Utah foreclosures situation. Home buyers with bad credit scores were approved for loans that they could never afford to pay. To make matters worse, most of them took out loans with adjustable interest rates. After two or three years, their mortgage dues ballooned by almost 40 percent, making payment quite impossible. Consumer advocates have already questioned these predatory lending practices and are demanding stricter regulations.

In addition to good economic outlook, Utah also enjoys one of the nation's lowest delinquency rates. Mortgage loan delinquency rates are calculated the counting the number of loans that are more than 30 days overdue. It is also considered to be a very important indicator of economic conditions since these delinquencies can become foreclosures. States with the highest delinquency rates include Mississippi, Louisiana, Michigan, Georgia and Indiana.

Another factor that contributes to the improving foreclosures condition is the positive home appreciation values. In this situation, owners facing foreclosure can quickly sell their homes at a reasonable price, allowing them to pay off mortgage debts. Of course, it would help if the owners make concessions with their asking prices. After all, buyers are always after the best deals. Many owners facing foreclosures have contacted real estate brokers experienced in the foreclosures market such as ForeclosureConnections.com.

Utah foreclosed homes are priced considerably lower than brand new homes and provide buyers with much return potential. Because of their lower than average market prices, these homes are great as rental properties or fixer uppers. Even with repair or renovation costs, buyers still end up with a lot of savings.

Looking for Utah foreclosures is not at all difficult although it usually requires a lot of effort. If you have no time to check out each foreclosed property, you should utilize foreclosure lists prepared by real estate brokers like ForeclosureConnections.com. These brokers can also assist you every step of the buying process, providing you with expert advice and insider tips.

You should conduct some research about the property's location before deciding on a purchase. Learning about the real estate market condition, development plans as well as potential for economic growth is very important. These factors can help you determine whether or not the property is priced reasonably and whether it would be a worthwhile investment. Some buyers even check the housing prices in the neighborhood to make sure they are not paying too much or too little.

As always, it is important to check the property's physical condition in case it would require considerable repairs. A professional inspector can be hired to do this, ensuring a thorough check.