Defaults Down, Foreclosures Up
There’s weird news coming out these days.
Apparently lenders are repossesing record numbers of homes. But at the same time, they’re starting far fewer new proceedings against delinquencies.
Weird, don’t you think?
Most people think it’s just delaying the inevitable. I mean, most of those struggling homeowners have lost their jobs. And with unemployment unlikely to change in the near future, those bills probably aren’t going to be paid too quickly.
So what are the banks going to do?
The number of default notices filed this month is 12% less than last. And foreclosures are up 1%.
It’s probably due to federal programs meant to modify loans that defaults were so low. But is it really a solution?
This kind of news is going to make it hard to predict things in the months to come.
- Will these homeowners be able to make their payments and keep up with modified loans?
- Will we see stages of peaks of foreclosures as more people default?
What do you think? What can we expect in the near future?
Let me know your thoughts.
