Number of homes facing foreclosure rose in July | Comcast
More U.S. homes started on the foreclosure path in July, as lenders tackled a backlog of mortgages gone unpaid even as they pulled back on home repossessions.
Filings of initial default notices have increased on an annual basis for three months in a row.
The trend comes as banks work to make up for time lost last year as the mortgage-lending industry grappled with allegations that it had processed foreclosures without verifying documents.
The nation's biggest mortgage lenders reached a $25 billion settlement in February with state officials. That cleared the way for banks to address their backlog of unpaid mortgages.
By borrowing far more heavily than what they could afford, they were also gambling that housing would keep rising in value, defying basic rules of economics.
On average, 104,000 homes have entered the foreclosure process each month going back to May. That's well below the 178,000 per-month average in 2009, the year with the highest monthly average, RealtyTrac said.
The increase in homes entering the foreclosure process raises the possibility that more properties could end up being foreclosed upon in coming months. But of late, banks have been dialing back home repossessions and increasingly allowing the borrower to sell the home in a short sale. That's when the bank agrees to accept less than what the seller owes on the mortgage.
Pay your mortgage or get out ,4 more years of Obama and you will be living on the street.
More U.S. homes started on the foreclosure path in July, as lenders tackled a backlog of mortgages gone unpaid even as they pulled back on home repossessions.
Filings of initial default notices have increased on an annual basis for three months in a row.
The trend comes as banks work to make up for time lost last year as the mortgage-lending industry grappled with allegations that it had processed foreclosures without verifying documents.
The nation's biggest mortgage lenders reached a $25 billion settlement in February with state officials. That cleared the way for banks to address their backlog of unpaid mortgages.
By borrowing far more heavily than what they could afford, they were also gambling that housing would keep rising in value, defying basic rules of economics.
On average, 104,000 homes have entered the foreclosure process each month going back to May. That's well below the 178,000 per-month average in 2009, the year with the highest monthly average, RealtyTrac said.
The increase in homes entering the foreclosure process raises the possibility that more properties could end up being foreclosed upon in coming months. But of late, banks have been dialing back home repossessions and increasingly allowing the borrower to sell the home in a short sale. That's when the bank agrees to accept less than what the seller owes on the mortgage.
Pay your mortgage or get out ,4 more years of Obama and you will be living on the street.
