Foreclosures 29% – Many people are very excited about the 29% drop of foreclosures recently, but the excitement should be tempered a bit. The numbers are not as exciting as they seem to be.
The number of foreclosures fell 29% in the first six months of 2011 compared to the first six months of 2010. The number of foreclosures in the first six months of 2011 were 1.17 million, according to RealtyTrac. They also found the number of foreclosures in the second quarter of this year to be lowest since the end of 2007, which definitely sound impressive.
Foreclosures 29%
Foreclosures 29%
I have to be the one to burst your bubble, but these numbers are incredibly deceiving, which is why you always have to research the back story before getting too excited. You have to know a few more things before you understand why these numbers are not reasons to celebrate.
In fact, according to Rick Sharga, Senior Vice President of RealtyTrac, a recovery is nowhere in sight.
“I wish I could tell you that the drop in foreclosure activity was because the economy was chugging along and the housing market was coming back and that it’s time to celebrate, [but] unfortunately that is simply not the case,” he tells Aaron in the accompanying interview. “We believe the drop off in foreclosure activity is being caused largely by paperwork and procedural delays along with a dose of government intervention and we think the numbers still have a ways to go before they get better on their own.”
The market isn’t recovering at all. The reasons the foreclosure numbers are down 29% is because there are so many backed up in the pipeline, the banks and foreclosure attorneys simply cannot get to them fast enough.
Sharga goes on to point out another reason the foreclosure market is in such a flux and the foreclosure numbers are down is because the industry is changing everyday. One day there will be a certain procedure, then the next day it changes, so this is causing a serious backlog as well.
There is no telling when the market will be able to recover. Experts do agree the market needs to flush out these foreclosures before there can be any real sign of a recovery in the housing market, but no one knows when that will be. There are some that say the housing market could be on track by the end of the year. There are others that say the housing market won’t be back until the middle of 2015. Who do you believe? - Foreclosures 29%
We now need to see if unemployment rate gets better. Keeping my money in the market still