Overwhelmed by the number of mortgage delinquencies, banks are overcoming their paperwork processing issues to process more foreclosures and to sell these homes and move them through the system.
With each foreclosure, banks lose on average more than $40,000.
For the first time in about a year, the rate of mortgage delinquencies is rising, presaging a rise in mortgage foreclosures, and more downward pressure on home prices, leading to more homes falling underwater and the vicious cycle continues.
“The overhang tied to delays in the court system is improving slowly, though we still have a large backlog,” Brinkmann said.”
The inventory of homes in foreclosure fell to 4.43 percent from 4.52 percent in the first quarter, the second consecutive quarterly decline, according to the Mortgage Bankers’ report. New foreclosures dropped to 0.96 percent from 1.08 percent, the third consecutive slump, the trade group said.