Foreclosure Activity on the Rise

Banks seized more homes in January than in the previous month indicating that foreclosures will start to rise again now that lenders have corrected document abuses.

RealtyTrac reported that foreclosures rose 8 percent in January, which is actually a decrease from the same time last year when foreclosure rates were 15 percent higher.  That translates to 210,941homes that were scheduled for seizure or auction.

Even though there is an overall national decrease in foreclosure, some states experienced a significant rise. In New Hampshire there was a 62 percent increase in foreclosure and 75 percent increase in Massachusetts. Foreclosure attorneys can prevent some of the residents of these states from losing their homes.

In 2011, banks slowed down the foreclosure process while they corrected fraudulent documentation practices, which led to a lengthy investigation and an eventual $25 billion settlement, intended to help troubled homeowners. Now that the process has been clarified, foreclosures are expected to rise in 2012.

RealtyTrac projects that foreclosures will rise 25 percent this year or 1 million homes. Last year banks seized 804,000 properties. Analyst expects the number of foreclosures to rise gradually throughout the year.

Not all people who receive default notices have to surrender their homes. A foreclosure lawyer can work with the homeowner and banks to negotiate a mortgage modification or a short sale. There are many homeowners who can retain a foreclosure attorney and challenge the bank’s decision to seize their home.