Welcome to 11/11/11. Crazy date! But it's Friday!
You know, there are countless folks out there who have been breathing a little easier for quite some time, due to the halt in Foreclosures (if you recall, the "robo-signing" crisis a while back), however, it appears that the Foreclosure starts are on the rise once again.
“Rising foreclosure start rates are likely a sign that servicers are playing catch-up on actions that have been delayed over the past year,” states Diane Pendley, managing director of Fitch Ratings, in a recent article on DSNews.com ("Foreclosure Starts Rise as Servicers Process Backlog of Delinquent Loans"), written by Krista Franks.
Fitch reported that the Foreclosure start rates for severely delinquent private-label residential mortgage-backed securities (RMBS) loans have "stayed above 10 percent since September — a rate they have not reached since November 2009", with an even larger amount since then. Additionally, the article mentioned that the foreclosure starts for loans delinquent for six months or more "have almost doubled in the past five months". What will happen with the increase of distressed properties? You guessed it - pressure on the Housing Market.
Further along in the Foreclosure process, the actual Foreclosure completions in judicial states "hover near their historic lows", the article says, to which Fitch says is due to "servicers’ continued loss mitigation efforts, a backlog in court foreclosure filings, and weak demand in the housing market.” Diane Pendley, managing director of Fitch Ratings, says that about a year after "deficiencies in the foreclosure process were brought to light", that Mortgage servicers now generally feel they have "implemented the corrective actions that they determined were needed".
With the backlog, Fitch says that the effects of rising foreclosure starts may take more than a year to be evident, however, any way you look at it, there will certainly be more distressed inventory going on the books and will certainly impact the Housing Market.
What are your thoughts?
Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
1. Locate the "Follow this Blog by Email" box on the Right Side of your Screen.
2. Type your E-mail address in the box, and click "Submit"
3. Check Your E-mail and Confirm Your Subscription...it's That Simple !
Have a Great Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com
TAGS: #foreclosurestarts #distressedproperties #housingmarket #inventory #robosigning #mortgagebacked #RMBS