US Foreclosures Rising Again
16 September 2011
US foreclosures have risen again in August as more and more US homeowners fall behind on their mortgage payments according to the latest data from Realty Trac.
August saw 7% more foreclosure filings than July, but the total was lower than the previous year for the 11th straight month, with filings 33% lower than August 2010.
Some 228,098 US households received a foreclosure notice of some kind in August, but it was default notices -- those which initiate the foreclosure process -- that grew 33% on the month. Both bank repossessions and foreclosure auctions fell slightly on the month.
According to RealtyTrac CEO James Saccacio, the rise in default notices would seem to indicate that the banks are now starting to push ahead once more in foreclosing upon the millions of struggling borrowers in the US, after the robo-signing scandal saw many start to delay the procedure.
"It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process," he said in a release.
Overseas property investors will not view the rise in default notices negatively, firstly because it will mean more repossessed properties coming onto the market for them to choose from, but also because there will be no recovery in prices until the glut of foreclosures are pushed through and sold. When this happens capital appreciation can begin they hope.