Foreclosures set to rise again as banks get their act together

After the $26 billion dollar settlement that has supposedly fixed paperwork screw ups, set guidelines for the future, and put cash into the hands of some former-homeowners, bank foreclosures have jumped up 3 percent in the last month.

The foreclosure freeze of 2011 is thawing out and kicking back into gear.

While states that do not require a judge to preside over foreclosure proceedings, like California, saw a jump in filings toward the end of last year, judicial states have all but stalled. That will now change, thanks to the $26 billion dollar government-lender/servicer settlement. There will still be some delays on individual state levels, but the wheels are turning again, and that means more bank repossessions and more foreclosed properties heading to the re-sale market.

Bank repossessions, the final stage of the foreclosure process, increased at least 30 percent  year-over-year in several states, including Massachusetts, which saw a 75 percent spike.  Bank-owned or REO (real estate owned) activity hit a 16-month high in Illinois and a 15-month high in Indiana.  Default notices, the first stage of foreclosure, were flat nationally in January, but spiked in judicial states, like Connecticut and Pennsylvania (up 112 percent) and even in non-judicial states like Maryland (up 100 percent).

Read the full post over at CNBC’s Business site. This sucks, but if you happen to have residential rental property, you may have made a good investment if you bought at a good price.

9 replies
  1. SeeingRed
    SeeingRed says:

    Oh don’t worry, OhZer0 & Dannel P. will just mandate that foreclosures aren’t legal any more, and that the banks will need to buck another?$XXX billion out of the gate to help the ‘little guy’.?? The mantra and actions of the Left is?a combination of vapid,?predictable, boring and hypocrisy.? What’s new?

  2. JBS
    JBS says:

    ?bama?s goal of destroying private property continues. Without private property to use as collateral for loans, the basis of raising capital vanishes. Without capital, capitalism ceases. The economy crumbles.
    The only system left is socialism. ?bama wins.
    Worse president ever.

  3. Lynn
    Lynn says:

    I see Communes, it’s the only way. Persuade the homeless, it is cool to live together in peace and goodwill. It worked in the 60’s. Hey, we can call it Retro Housing, Hollywood could have a blast hyping this with their cool actors. Or hey, how about Tent cities, I gotta million of ideas!

  4. Lynn
    Lynn says:

    Just gave me chills, I recommend you read “Helter Skelter” by Bugliosi. Tells about how Charlie used the rich girls to fund his madness.? Sorry a little off target, but if people have no money and no future, they turn to cults

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