It looks like the rate of foreclosures is going to get worse, putting more downward pressure on home prices and increasing the number of mortgage foreclosures and the vicious cycle repeats.
After much examination of their foreclosure processes, the big banks are rattling out their foreclosure notices and taking action. They’re also ready to bring more homes to market, thus pushing down prices.
Report: Banks have stepped up their actions against homeowners who have fallen behind on their mortgage payments, setting the stage for a fresh wave of foreclosures.
The number of U.S. homes that received an initial default notice — the first step in the foreclosure process — jumped 33 percent in August from July, foreclosure listing firm RealtyTrac Inc. said Thursday.
The increase represents a nine-month high and the biggest monthly gain in four years. The spike signals banks are starting to take swifter action against homeowners, nearly a year after processing issues led to a sharp slowdown in foreclosures.