Starts in foreclosure proceedings ticked up for the first time in more than two years, according to housing data firm RealtyTrac, as government-sponsored loan modifications began readjusting their interest rates earlier this year and as some lenders are beginning to lend to higher-risk borrowers.
A total of about 56,000 U.S. properties started the foreclosure process in November, RealtyTrac reported as part of a monthly analysis of U.S. foreclosure activity. It was a decrease of 1% from October 2014, but a 6% increase from a year ago, the first increase in 27 months of otherwise declining foreclosure activity. While foreclosure auctions tumbled in November, down 16% from the previous month to about 50,000, they remained close to October’s mark, which was an 18-month high and up 5% from a year ago.
“The housing market is struggling to find the new normal when it comes to a tolerable level of foreclosure activity in this post-Great Recession economy,” said Daren Blomquist, vice president of RealtyTrac, who said that the increase in foreclosure activity on 2014 originated loans over 2013 originated loans may not herald a new downturn, but that the mortgage market is returning to more healthy levels of lending and turnover. “Lenders are open to a slightly higher level of risk than we’ve seen over the past five years of extremely tight lending standards,” he said. Last week the Treasury Department and HUD announced it would take steps to prevent about one million borrowers who had previously completed a home loan modification under the Home Affordable Mortgage Program from falling behind on their payments as interest rates rose as part of their agreement under the program. These steps include interest rate reductions and increased cash bonuses.
Author:Darik Steinbach Phone: 952-239-4290 Dated: December 11th 2014 Views: 228 About Darik: I have been selling residential real estate in Minneapolis full time for 10+ years.
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