Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Completed Foreclosures Plummet but Foreclosure Inventories Remain High

Notify me of new replies via email
  • The Great Foreclosure Trick or Treat | Marrocco De | | 01 Nov 2012, 02:40 AM Agree 0
    [...] as high as it was a year ago and has fallen less than 7 percent since March, according to the latest report from CoreLogic released this morning. The national inventory stands at million homes, or 3.3 percent of all homes [...]
  • William Matz | | 01 Nov 2012, 07:21 PM Agree 0
    By itself this number tells us nothing. We don't know if the decline is due to overall fewer mortgages in distress, or whether the distressed mortgages are being resolved with a different mix of solutions (short sales, deeds in lieu, mortgage mods, or forbearances). HARP 2.0 may also save some homes that might have gone to foreclosure. New laws are pushing alternatives over foreclosure, which is likely contributing to the shift. Hopefully, we are starting to emerge from the crisis, but that is not yet clear.
  • Steve Cook | | 02 Nov 2012, 05:31 AM Agree 0
    William,

    Thanks for your comment.

    The foreclosure inventory numbers reported by CoreLogic are mortgages that are in the foreclosure process, e.g. they are not short sales, deeds in lieu, mortgage mods or forebearances, which CoreLogic categorizes as shadow inventory along with delinquencies older than 30 days.

    I agree with you that we are emerging from the crisis and the larger picture has been improving for more than two years. The situation I described is a short term view and distressed sales generally are improving significantly. Defaults are down 40 percent from a year ago and, unless we should suffer another serious economic downturn, the days of the Foreclosure Era are numbered.
  • William Matz | | 02 Nov 2012, 12:55 PM Agree 0
    Steve,

    While the overall numbers are cautiously encouraging, it is the local numbers that are the direct concern. In our CA county of @450,000, I am seeing 15-20 new sale notices daily in the main paper and another 5 in fringe papers. Accounting for the 3-time publication requirement, that is about 200 pending sales per month. Now many of those are postponed, which entails no published notice. How does CoreLogic report postponed sales? Short sales are reportedly up, which will divert many would-be foreclosures.

    I remain concerned that when we finally see the double whammy of rising prices and higher interest, it will have a major dampening effect on sales. Plus rising payments on ARMs and many HAMP mods will trgger some additional defaults. I hope we can finesse our way thru this, but significant risks remain.
  • Sistem Inventory Asset | | 06 Nov 2012, 01:45 AM Agree 0
    Hey I just wanted to say that I really enjoyed reading your blog. You have good views, Keep up the good informative info.Good Quality and very informative Blog! Keep post!
  • Steve Cook | | 06 Nov 2012, 05:42 AM Agree 0
    Thanks, Lily!
Post a reply