Get Low! US Foreclosure Filings

Sometimes things that are not-so-great start to look better, but it doesn't mean that those things are actually better, like being unemployed and getting an extension on your rent from your landlord. Sure that might sound good, but the problem is that you have a bad history with paying rent, you don't have a job, and it might be hard to find one soon. The landlord is taking a huge risk on you. Although the situation might appear to be better now, it probably won't pay off in the end.

This is what is occurring right now with U.S. foreclosure filings.

According to Bloomberg, “U.S. foreclosure filings dropped 35 percent last month to the lowest level in almost four years as lenders and state and federal agencies increased efforts to keep delinquent borrowers in their homes, RealtyTrac Inc. said.”

Kind of like you and you're bad rent habits, but it's with a home mortgage instead.

“A total of 212,764 properties received default, auction or repossession notices, the fewest in 44 months, the Irvine, California-based data seller said today.”

Although this might look like a good sign for real estate, the truth is that it's a false positive. You know, like being told you are cancer free, but it unfortunately comes back with a vengeance.

“The downward trend in foreclosure activity has now taken on a life of its own,” RealtyTrac Chief Executive Officer James J. Saccacio said in a statement. “Unfortunately, the falloff in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond.”

So, what is the answer to this problem? Well, for starters, people who can't pay their loans and mortgages should never been given the opportunity to try. It's just bad business.

Sure, people might make money off of this practice at the beginning, but in reality it hurts us all. Just look at the housing crisis a few years ago.

Of course, the fault also lies with those who try to get mortgages when they know very well that they are living outside their means. False sense of entitlement can be a serious issue for some, or maybe for most of us?

What do you think about the recent U.S. Foreclosure Filings?

Source article by Dan Levy from Bloomberg

#CRE #economy #finance