More Recently-Originated Mortgages Being Foreclosed

An article on CNBC  just appeared a short time ago this morning that outlines the latest report from RealtyTrac regarding foreclosure filings.  It appears that foreclosures are on the rise with banks opening their flood gates to deal with a number of non-performing loans that have been stagnating for some time on the back burner.  The report also indicates that foreclosures on recent loans (loans originated in 2013 and 2014) have increased slightly.  That is not good news by any stretch of the imagination.  With the job growth that has been steadily taking place this year I find that to be a bit disturbing although while the number of jobs have increased I believe that reports also show that there has been very little increase in income and wages.  The price of everything seems to be increasing (with the exception of gasoline).  I know that food prices are creeping up every week and utility costs are on the upswing with utility companies always asking for permission to increase their rates.  It is becoming more and more difficult to make ends meet for a number of people I fear.

RealtyTrac indicated (according to CNBC) that states requiring judicial foreclosures experienced an increase of about 21% in foreclosures while states with non-judicial foreclosures experienced an increase of about 27% in their foreclosure rates.  Those number previously were much farther apart.

The report further indicates that there are more buyers at foreclosure auctions that are actually buying the properties so that they are not going into the banks' inventories as REO properties.  Having been involved with a number of banks that had large number of REO properties back in the early 1990s, I know thqat that inventory can mean a very big drain on the bank's bottom line.  Maintenance, insurance, taxes and costs of disposition hit the baniks hard and auction sales do not always help the banks realize anywhere to close to what they need to get to keep everything floating.  I think that it is encouraging to know that a number of individual and evenb institutional investors are buying these foreclosure properties at the auctions rather than the banks having to add the property to their inventoriues of REO properties.  It may well help the housing recovery, and increase the number of properties available for rent so that rents can be brought down to a more reasonable level as it was recently reported that a shortage in rental housing is also causing an increase in the cost of renting a home.  Anything to stem the tide of increasing prices for just about everything across the board will be good for all of us,