More on January Foreclosures

Inquiring minds are looking at a great article in The Atlantic by Daniel Indiviglio showing the same Foreclosure numbers as in “Foreclosures Falling, But…“. However, Mr. Indiviglio gives some additional information, as well as a different look on the foreclosure numbers as well.

In the graph above, you will notice that it is the same “line” (line created by the top of the ‘stacks’) as in the previous article. However, this chart is a great chance to see the mix of the data.

Through this, you can see the increase in total foreclosure activity. As the chart shows, it’s nearly back up to its November level, but still much lower than it was during the months leading into October. As banks continue to work through the foreclosure inventory they delayed over the past several months, we should start to see these numbers begin to rise faster.

Also, in the chart below, it is possible to see the foreclosure numbers by state. It is interesting to note that these numbers show California is down 6.6 percent YOY but, once again, as stated previously…this month’s set of numbers should be taken with a grain of salt.

We will leave you with the closing paragraph of the article, as that it states precisely what this month’s numbers are all about:

In a sense, January’s increase in foreclosure activity is good news. The steep decline we saw after October was not a sign of homeowners doing a better job paying their mortgages. Instead, it was indicative of banks delaying mostly inevitable foreclosures to make sure all legal aspects of the process were in good order before proceeding. So as foreclosures rise back to levels more representative of what’s really going on in the market, the housing sector can continue searching for a bottom and get there sooner, rather than later. Once the market finally stabilizes, it can finally begin to heal.


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