Foreclosures on the Rise Again

[geckosfeet]

Thank goodness for that wonderful foreclosure settlement.

http://www.cnbc.com/id/46401756

"We expect the pattern of increasing foreclosures to continue in the coming months, especially given the finalized mortgage and foreclosure settlement reached in early February between 49 state attorneys general and five of the nation's largest lenders," said RealtyTrac's CEO Brandon Moore in a written release. "Foreclosure activity increased on a year-over-year basis for the first time in more than 12 months in Florida, Illinois, Indiana and Pennsylvania, following a pattern we saw in late 2011 in states such as California, Arizona and Massachusetts."

Bank repossessions, the final stage of the foreclosure process, increased at least 30 percent year-over-year in several states, including Massachusetts, which saw a 75 percent spike. Bank-owned or REO (real estate owned) activity hit a 16-month high in Illinois and a 15-month high in Indiana. Default notices, the first stage of foreclosure, were flat nationally in January, but spiked in judicial states, like Connecticut and Pennsylvania (up 112 percent) and even in non-judicial states like Maryland (up 100 percent).

As optimism seems to abound for the spring, at least among the nation's home builders whose sentiment index jumped to the highest level in four years this month, foreclosures still stand in the way of a robust recovery.

Distressed property sales lower the value of homes around them, and that pushes more borrowers into a negative equity position, owing more on their mortgages than their homes are currently valued. Until banks work through the enormous backlog of foreclosures, which number in the millions, home prices will not hit a firm bottom, especially in the most troubled local real estate markets.

http://www.cnbc.com/id/46401756

Hmmm. Builders sentiments up. Foreclosures and repossessions up. Seems like contradictory data. I am afraid that I see more reality in the last sentence "Until banks work through the enormous backlog of foreclosures, which number in the millions, home prices will not hit a firm bottom, especially in the most troubled local real estate markets." than in the builders sentiment index.

People need jobs and income to pay their mortgages. How many have just walked away from their homes? And I thought the foreclosure settlement was supposed to help people stay in their homes. Silly me.

On edit: Nice map showing foreclosure density by state and county at this link
http://www.worldpropertychannel.com/north-america-residential-news/foreclosure-report-foreclosure-filings-loan-default-notices-scheduled-auctions-bank-repossessions-realtytrac-foreclosure-market-report-for-january-2012-robo-signings-5307.php



"They call it the Ameican dream, because you have to be asleep to believe it."
George Carlin

[CAPHAVOC]

1. Most foreclosures do not hold up to FHA inspection for financing.

So there they sit.