A new report from RealtyTrac showed that foreclosure activity increased in major markets like Pittsburg, New York, Indianapolis and Raleigh for the first three months of this year, weighing down on home prices.
An overwhelming majority of markets reported a rise in foreclosure filings though the number of foreclosures has declined since the same time last year. Even though foreclosures are down over last year, they are still much higher than would be seen in a healthy housing market.
Brandon Moore, Chief executive officer of RealtyTrac, said the first quarter jump is, “an early sign that long-dormant foreclosures are coming out of hibernation in many local markets.
Since banks agreed on a $25 billion settlement with the federal government, they have worked on saving more homes through mortgage modifications, short-sales, deeds in lieu of foreclosure and rental for deed programs. This has helped reduce the number of people who need the assistance of a foreclosure attorney, but it is not a sign that the housing market is in recovery.
New home loan delinquencies are also on the decline as the job market has improved.
RealtyTrac stated last year that foreclosures would begin to rise as banks revamped their paperwork practices.
Homeowners, who have received a default notice, luckily have courses of action they can take to keep their homes. A foreclosure lawyer can outline the options available to troubled homeowner who may qualify for a mortgage modification or judicial review of their case. While a foreclosure attorneys cannot save all homes than can give some people a fighting chance.