Foreclosures Up for Second Consecutive Month

New data released by RealtyTrac showed that foreclosure starts were up in June over the first half of 2012 indicating that banks are clearing out their backlogs following the national foreclosure settlement.

For the first half of the year, foreclosure actions, which include default notices, auctions, and repossessions, were on the decline, but the housing experts anticipated that they would begin to rise as banks overhauled their foreclosure processing practices. The data shows that foreclosures decreased by 11 percent in June over last year.

Foreclosure starts, homes just entering the foreclosure process, increased by 11 percent over June of 2011, but decreased 4 percent over May.

California topped the list with the highest increase of foreclosures. In June, 18 percent more homeowners entered the process over the same month last year.

An increase in foreclosures is both good and bad news. For the housing market, the rise indicates that the housing market is on the road to a quicker recovery. But for the homeowner they must either leave their homes or contact a foreclosure lawyer to help them fight to keep their most valued possession.

Upon receiving a default notice, the homeowner can take steps to avoid this action by hiring a foreclosure attorney who will offer them other possibilities like a mortgage modification. Despite the national settlement, banks have been reluctant to offer loan modifications or have made obtaining them more difficult.

Banks often prefer short sales in which an individual agrees to sell their homes for less than they are worth in exchange for dismissing the homeowners balance.

A troubled homeowner may be unclear what to do when they receive the initial notice, but a foreclosure lawyer can clarify the alternatives and advise their clients on which options is in line with their needs.