Wave of foreclosures may never come

TRD NEW YORK /
May.May 04, 2012 10:00 AM

Housing pundits have long warned of a backlog of foreclosures waiting to flood the market and further sink housing prices. But according to the Wall Street Journal, the bursting of the pipe may never come to fruition. New foreclosure filings remain well below their levels from this time last year, down 31.1 percent year-over-year in March, according to LPS applied analytics. Delinquencies are also down 8.8 percent over that time frame.

While there’s been a slight month-over-month uptick, it’s far from the foreclosure disaster experts predicted.

The Journal attributed the relative lack of foreclosures to the $25 billion mortgage-servicing settlement the government reached with banks in February. It required that $17 billion be used to help owners stay in their homes, including $10 billion towards writing down loan balances.

While lenders take time to sort through the aid packages, foreclosures might continue their slow, steady drip for many years — rather than hit the market in one fell swoop as housing analysts previously feared. [WSJ]


Related Articles

arrow_forward_ios
NYC saw a dip in home foreclosures last year (Credit: iStock)

Home foreclosures dip in NYC for 2nd straight year

Selina Hotel at 516- 518 West 27th Street and Adam Neumann (Credit: Google Maps, Getty Images)

Lender moves to foreclose on site of NYC hotel linked to Adam Neumann, Mexican magnate

Nationwide foreclosures are at a 15-year low (Credit: iStock)

Foreclosures nationwide fell to 15-year low in 2019

494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”

Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Lender forecloses on Maefield’s billion-dollar Times Square project

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

arrow_forward_ios
Loading...