Wednesday, January 14, 2009

Foreclosures back on the rise.

I've postulated a few times that I thought the lenders would be proactive with the lull S.B.1137 provided in getting ahead of the foreclosure problem through encouraging short sales or using loan modifications. Despite the facts to the contrary from other states whose foreclosure moratoriums did nothing to alleviate the issue.

It should be noted I am often wrong and usually spectacularly so, so you really shouldn't be listening to anything I say. Needless to say this looks to be one of those many times. Here is the Foreclosure Radar foreclosure chart for December 2008:

Now conceptually the servicers could be doing all that junk I just said once the borrower defaults because that is when they get maximum leeway with their investors. But right now I think it is much safer to say I am wrong and then let the data prove drove any changes in that forecast. If I don't see a significant rise in Notice of Trustee Sale or Foreclosure sales in the next 3 or 4 then I'll raise the matter again.


Anonymous said...

Better for buyers like me...for sure.

Effective Demand said...

Absolutely. This will bring the market down to where it should be faster. In a few years it might even be a buyers market, by that I means homes underpriced by fundamentals. And for those patient people who have been doing the right thing and not going crazy it will be a very sweet thing.