We have discussed how weak the housing market really is ex-government stimulus. The data is starting to confirm this fact. Foreclosures are back on the rise according to RealtyTrac. This is an important development because banks have been very hesitant to foreclose on properties. The reason being that they would have to finally recognize the losses, something they are loath to do. But it seems they are finally beginning to foreclose on delinquent properties. From Dow Jones:
The number of properties in the U.S. that received foreclosure filings rose 4% in August from July, but declined 5% from a year earlier, according to market researcher RealtyTrac.
The sector has seen an uneven recovery after the real-estate market's deep, prolonged downturn. Home sales have slid since the expiration of the first-time homebuyer tax credit in April, and data have shown that underlying real-estate demand could be weaker than expected.
RealtyTrac said 338,836 properties got a filing in August, the 18th straight month the figure has topped 300,000.
Chief Executive James J. Saccacio said the number of default notices continued to decrease, converging with increasing bank repossessions, indicating that "the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers."
Nevada continued to top the list of states for foreclosures, with one out of every 84 housing units getting a foreclosure filing last month. Florida ranked second, with one in 155 units getting a filing. Both states' rates improved, though, from a year ago.
Foreclosures On The Rise Again
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