The number of foreclosure notices declined to its lowest in four years, this would be encouraging news but in reality the drop is attributed to processing delays as opposed to housing recovery, according to Bloomberg.
According to Realty Trac’s chief executive officer James J Saccacio “Foreclosure processing delays masks the true face of the foreclosure situation,” he further adds “Even at a significantly lower level than a year ago, the new supply of Real Estate Owned (REOs) exceeds the amount being sold each month.” REOs are properties owned by real estate companies. The current inventory of distressed homes stands at 1.8 million, which would take at least three years to sell.
The processing delays come in the wake of much needed reform by banks that have been criticized by the federal government for their improper handling of foreclosure paperwork. Numerous homeowners have faced wrongful seizure and have hired foreclosure attorneys to contest the banks. While mortgage lenders rework the way they process foreclosures, the number of distressed sales may decline, but the reality is the housing market isn’t out of the woods yet. Foreclosure statistics could rise once banks have reworked their processing procedures.
Some states like Nevada, Arizona and California are still plagued by foreclosures. Some are eligible for loan modifications, but many others must hire a knowledgeable foreclosure lawyer.
Homeowners who have been prey to wrongful foreclosure, and faulty paperwork should retain a foreclosure lawyer who may make it possible for them to stay in their homes.
