Foreclosures increased 33% from last month according to RealtyTrac. A large amount of this is attributed to Bank of America. There was a lawsuit filed claiming that the foreclosure process was fraudulent because they were using an “auto-signature” on paperwork, so that put a stop to a number of foreclosures. It looks like those foreclosures are now being pushed through the system. On the bright side, foreclosures are still 33% below last year…
Mortgage servicers started the foreclosure process on more than 78,800 properties in August, a 33% increase from the month before and the highest monthly increase in four years, according to RealtyTrac…
…Overall filings, including default notices, scheduled auctions and bank repossessions, reached 228,098 in August, up 7% from the previous month but still down 33% from last year.
Read Full Article from HousingWire
This is part of the “Shadow Inventory”. There have been a number of estimates on how large this shadow inventory is. Call this blinding optimism on my part but I don’t believe the shadow inventory will hit the market in large numbers. I will try to quantify my theory with some data in the coming weeks, but right now I speculate that the banks will work off the inventory with refinancing and short sales. The banks are getting smarter at this and are realizing that they take a huge bath when they take the property back. The foreclsoures are still a big problem until employment gets back up where people can meet their obligations again.
- US DATA: RealtyTrac’s Aug U.S. Foreclosure Market…. (forexlive.com)
- Mortgage default warnings surge in August (sfgate.com)
- Foreclosures Rise; Repossessions Set Record (newcenturybroker.wordpress.com)
- Foreclosure filings jump 7% in August from July (marketwatch.com)
- Mortgage Default Warnings Surged In August (npr.org)
- Foreclosures ..New Bank Owned Homes May Be Hitting Our Market Soon ! (1gilbertarizonahomes.wordpress.com)