August Foreclosures Steady from July

Slight Dip Recorded In Foreclosure Rate
Okay, first the unpleasant news. According to the latest data from RealtyTrac, over 358,000 foreclosure filings took place in August, which is an 18% increase as compared with August of 2008.

Now for the good news. July had reports of more than 360,000, so the number actually decreased slightly. This serves as evidence that HARP and HAMP (and all of the other four letter words being uttered in Washington) are holding some sway with the banking industry.

Uvestor Opportunity:
One person’s bad news is another person’s good news. That’s simply how it works in the foreclosure business. Even though no one wishes a bad situation on someone else, it does not change the fact that someone needs to pick up the pieces when things go screwy with a mortgage loan.

No doubt, lawmakers will be encouraged by the slight progress made in refinancing and foreclosure avoidance. Expect the battle to continue well into next year over modifications and assistance programs. If banks continue to make steady progress with the number of people they are helping, the government will cede the point that some foreclosures are necessary and healthy for the industry.

Most investors have witnessed less inventory come to market this summer than was expected. At some point, these unaccounted for homes will surface, however, and the rates and prices really are not going to be vastly different than they would have been in June or July. If you have a good relationship with some local lenders, it may be worth exploring what they are holding and if they are ready to reveal how long they plan on sitting on inventory. A lot of investors are ready now.