Foreclosures Being Prevented, Initiated

Different Forces Continue to Exert Influence
Looking for good news to start the month and the weekend? Hope Now released a report on Wednesday showing that foreclosure starts fell 21% from July to August for a total 224,000. The drop was attributed to foreclosure intervention as opposed to natural market forces. While loan modifications increased only 7%, repayments and workouts increased 38% and 28% respectively.

As noted yesterday, delinquent statuses are on the rise, though, as over three million homeowners are 60 days or more behind on their mortgage payments. The U.S. Department of the Treasury announced this week that one million homes are in the process of foreclosure.

It should be noted that banks are pitching in to help more than they were to start the year, thanks in no small part to persistent goading from the government and the Making Homes Affordable plan. In addition, some banks used the first part of 2009 to get their own books in better shape, and that has allowed them to extend some increased flexibility to lagging homeowners.

Uvestor Opportunity:
Sometimes the warning signs weigh so heavily on the hearts and minds of those following the market that it becomes difficult to acknowledge the complexity of the situation. Indeed, some signs are positive.

General consumer mood has been strong this summer, and plenty of buyers have entered the market to cut down on the high inventory levels. In many areas, property values have not plummeted, and unemployment has not been a noticeable drag. With real estate being a mostly localized market, vastly different experiences are occurring throughout the country.

Lots of foreclosures are on the way, but those properties, by and large, still appear to be good investments for the next owners. Will the recovery be sluggish? Probably. But the new depths of gloom and doom some are forecasting still feels a little overwrought, as well.