Foreclosure Tide to Rise After $25 billion Mortgage Settlement

One in every 637 U.S. housing units were in the process of foreclosure in February 2012, this according to the latest report from the information provider RealtyTrac.

This latest foreclosure data was a 2% decline from the data in January 2012 and a decline by 8% from February 2011 — the lowest annual decrease since October 2010.

Dan Levy of Bloomberg, in the article “Foreclosures Fall 8% in U.S. With Seizure Increase Coming” said, “U.S. banks slowed foreclosures for more than a year as attorneys general in all 50 states investigated charges of shoddy and incomplete paperwork used to repossess homes.”

It can be recalled that Last February 9, the five largest mortgage services or banks and 49 state attorneys general agreed to a $25 billion settlement to address the mortgage loan servicing and foreclosure abuses. These five banks are Wells Fargo, Bank of America, JPMorgan Chase, Citigroup and Ally Financial.

Maryland Attorney General Douglas F. Gansler earlier announced that out of the $25 billion mortgage settlement, $960 million settlement will go to Maryland’s distressed homeowners.

Last March 12, final details of the $25 billion settlement were filed before a federal court.

In a statement, Brandon Moore, CEO of RealtyTrac, said, “February’s numbers point to a gradually rising foreclosure tide as some of the barriers that have been holding back foreclosures are removed.”

“The foreclosure and mortgage settlement filed in court earlier this week will help pave the way to a properly functioning foreclosure process by providing a clear roadmap for necessary foreclosures,” Moore added.

Les Christie of CNN Money, in the article “Foreclosures fall, but there’s a ‘rising tide’ ahead” said, “The agreement ($25 billion settlement) clarifies how foreclosures must be handled, and that is expected to enable banks to speed up their processing, putting many new delinquent homeowners into the foreclosure process.”

Whether you are a first-time home buyer, first-time home seller, empty nester, thinking about selling a home or buying a home, do contact the Guldi Real Estate Group. In Southern Maryland, the Guldi Group is the number one real estate team.