Foreclosure filings rise again in August

Consumer difficulty with home loans persisted in August, according to a recent report from RealtyTrac.

The company, which tracks foreclosures, said filings increased 4 percent in August after a similar rise the month before. In all, 338,836 properties were affected for a rate of one in every 381 housing units in the country.

"The trend lines of decreasing default notices and increasing bank repossessions converged in August, with virtually the same number of new default notices and bank repossessions for the month – a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers," said James Saccacio, CEO of the company.

An increase in the number of foreclosure filings shows the housing market continues to be strained as some consumers find difficulty in paying home loans.

However, people who are looking to buy a property may benefit by increased selection and lower prices.

Consumers who are trying to avoid foreclosure may consider the government's Home Affordable Modification Program, which may lead to lower monthly mortgage payments. Many lenders have also instituted their own prevention programs to help borrowers.

The FHA, for example, recently launched a program that could lead to refinancing for a particular segment of the population.

Posted in: Mortgage

Mortgage News: This article was published on 9-18-2010 at 11:33 am.

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