According to RealtyTrac, foreclosure filings were down 3% in October, the third consecutive month-over-month dip. Foreclosure rates are still up 18% compared with October 2008, but the month-over-month decrease followed a 4% drop in filings during September and a 1% fall in August. “Three consecutive monthly declines is unprecedented for our report, and, on first blush, an indication that the foreclosure tide may be turning,” said James Saccacio, RealtyTrac’s CEO, in a prepared statement. “The fundamental forces driving foreclosure activity in this housing downturn — high-risk mortgages, negative equity, and unemployment — continue to loom over any nascent recovery,” he said. “And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states.”
RealtyTrac spokesman Rick Sharga thinks that declining foreclosures may be artificial rather than a real trend. “Processing delays and legislative actions are slowing down foreclosures,” and not actual improvement in the market, he said. The slowdowns include banks taking time to judge whether some loans are eligible for the Making Home Affordable program, President Obama’s foreclosure-prevention initiative that was passed last spring. And new state-level regulations have also lowered foreclosure statistics. One such rule that took effect July 1 in Nevada allows homeowners who receive notices of default to demand mandatory mediation with their lenders.
That’s probably a true statement that foreclosures are being delayed by processing delays and legislative actions. It could be a play too make it seem like the foreclosure market is on the mend, at least for the view of the public. Its just a way too step around the issue.
Real estate should always be thought of as long term investments. People who buy properties whether in San Diego or anywhere else must realize that the potential for loss is ever present.
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