Bank owned home foreclosures continue to gain strength at a rapid pace. The trend is partly blamed on the rising mortgage delinquencies. Industry experts said that financial companies and consumer demand will continue to suffer and pay for bad loan decisions made during the peak of the housing market.

In November 2005, home sales reached an annual pace of 8.5 million. The following year, home sales dropped by almost 3 million. The rest is history as the housing market continues to spiral downward, pulling everything with it, including the economy, home prices and home values.

And adding to the worsening problem is the rapid rise in the unemployment rate. Last month, the number of people who lost their jobs reached 9.8 percent. According to industry experts, it will take at least one year before many Americans would need more new houses to accommodate increasing demand due to the lag between mortgage delinquency, bank home foreclosures and resale.

Market data showed that one-quarter of subprime mortgages accounted for the total loan delinquency so it is expected that there will be no shortage of housing supply. Industry analysts said that the large inventory of repossessed properties on the market will forever hinder whatever progress is made towards the recovery of the economy and the housing market.

Statistical reports noted that as many as 5.8 million loans are in danger of defaulting and going into foreclosure. The figures overwhelmed the sales of existing single family distressed homes which reached 5.1 million annually.

Meanwhile, home prices in the country posted marginal gains from April to July. However, industry analysts are not confident that home prices will continue to increase the rest of the year and next year given the large supply of distressed foreclosure houses on the market.

They pointed out that there is a possibility that the current 30 percent drop in home prices is still a carryover from 2006. Analysts said that banks are still facing loan losses, therefore a rise in consumer demand is not yet possible.

Also, the unemployment rate remains unabated and many homeowners have already exhausted their savings and many are turning away from their properties that are worth less than the total mortgage they owed. All these trends are pointing towards more bank home foreclosures in the future, analysts said.