Foreclosures to climb in 2011: report

Foreclosures will increase moderately in 2011, according to Radar Logic’s year-end predictions. Since lenders have largely resolved their processing issues and have become more efficient, this may be most visible in the foreclosure filing numbers as total foreclosed homes will fluctuate based on REO sales activity, Radar Logic said. The company also predicts that delinquencies and defaults will remain high and possibly increase. In terms of housing inventory, Radar Logic said that visible supply would remain flat or increase moderately, with more REO properties being put on the market but new homes not experiencing a significant increase. However, Radar Logic does predict a substantial increase in shadow supply, as the number of underwater homes continue to increase while values drop. TRD