Bank foreclosures are once more on the rise as lenders begin processing properties with unpaid mortgages again.
After the ‘robo-signing’ scandal broke, all major lenders stopped processing them until there was a resolution. After a $25 billion settlement was reached, along with more safeguards to prevent this problem in the future, banks are now starting proceedings on those properties that have been held up during the hiatus. Additionally, there are more homes that have fallen behind in their mortgage payments in the interim
In May, almost 54,000 homes finished the foreclosure process in the US, an increase of 7 percent over April. Bank foreclosure notices starting the process were at nearly 206,000, an increase of 9 percent over April.
Short sales keep the number of bank foreclosures from looking more dramatic. A short sale is one in which the bank will accept less than what is owed on the mortgage rather than complete the foreclosure, requiring the bank to take possession.
Foreclosure listings will also swell over the coming months, giving small investors a greater chance of finding housing bargains.
Georgia showed the largest statewide increase with a 33 percent jump in foreclosure activity between April and May, and a 30 percent increase over May of last year.
The 10 states with highest foreclosure listings are: Georgia, Arizona, Nevada, California, Illinois, Florida, Ohio, Michigan, and South Carolina.
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