24 Jul FORECLOSURES ON THE RISE
FORECLOSURES ON THE RISE
It’s been nearly two-thirds of a year since foreclosure starts were on the upswing, but May marked the end of a positive trend in declining foreclosure starts across the country. According to Black Knight Financial Services, foreclosures starts rose nationwide in May by a startling 9.5 percent. Furthermore, many of the starts were actually “repeat foreclosures” that were modified or otherwise returned to the system and labeled normal but now have once again gone into distress. “These are loans that had been in foreclosures, shifted back to either current or delinquent status by way of modification, repayment plan, or some action by the borrower, but have now fallen into foreclosure once again,” explained Kostya Gradushy, Black Knight manager of Loan Data and Customer Analytics. However, she noted, the overall trend in foreclosure starts is still a positive one, with only New Jersey posting year-over-year increases in foreclosure starts despite the nationwide upswing.
Although foreclosure starts are up, nationwide mortgage delinquencies and foreclosures themselves are down. In fact, the national foreclosure inventory is at its lowest level since July 2008 and the pre-sale foreclosure inventory down more than 37 percent year-over-year. Analysts across the board are hurrying to point out that this makes the foreclosure starts number relatively insignificant at this time.
The increase in foreclosed homes expected to hit to market in the near future could cause a drop in median home price.