An Increase in Foreclosure Activity is a Good Thing
It is certainly a very scary time receiving a notice of default and having to go through the process of foreclosure. There are few things worse than losing one’s home. However, an increase in foreclosure rates may be a sign that the housing market is on its way to recovery. As industry analysts put it, “the sooner the inevitable foreclosures get cleared out, the better.”
The Associated Press reports that in the month of October, more U.S. homes entered into the foreclosure process than in previous months. The Associated Press also reports that there was a monthly increase in the number of U.S. homes scheduled for auction, repossession, and notice of default. As a result of this increase in the month of October, homes that likely will be lost to foreclosure have reached a seven-month high. Although these figures sound like terrible news for those struggling to make payments, industry analysts urge the necessity of the foreclosures in order to bring on the revival of the housing market.
It seems as if this housing crisis has been around for quite some time. Some have contested that government intervention, which has required tedious filing practices on the part of the lenders, is behind this slowed process. However, RealtyTrac CEO James Saccacio is optimistic that this will change, he remarks, “We’ll eventually see foreclosure processing go up.”
Insider trading data suggests that some already are beginning to feel the revival of the market. Trading in the real estate and construction markets have lead some to believe that a rebound is not too far off.
Rebecca Lipman, Foreclosures Rising: Are We Nearing the End of the Housing Crisis?