Foreclosure Numbers Improve Amid Dismal Home Sales

By Alec Foege

| Posted Aug 26th 2010 1:56PM

Does a shred of good news have an impact amid a forest of disastrous reports? The Mortgage Bankers Association reported that the number of loans in the foreclosure process declined in the second quarter of 2010 for the first time since 2006. The question remains whether this figure matters in light of the recent 27 percent decline in existing home sales. The answer is probably yes and no. The good news is that most of the subprime loans that contributed to the housing crash have worked their way through the system. The bad news is that many homeowners with conventional loans are now sliding toward foreclosure due to the persistently high unemployment rate. While nobody really knows whether home sales will recover in the coming months, it's nice to know that not every every market indicator is pointing toward the cellar.

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Mortgage rates are at an all-time low. What's keeping you from buying?
Lender requirements are too strict. I can't qualify for a loan.	5025 (39.5%)
I have to sell my current home first.	4348 (34.2%)
You could bring the interest down to 0 percent -- I still couldn't afford the monthly payments.	3359 (26.4%)

Mortgage rates are at an all-time low. What's keeping you from buying?

Lender requirements are too strict. I can't qualify for a loan.

5025 (39.5%)

I have to sell my current home first.

4348 (34.2%)

You could bring the interest down to 0 percent -- I still couldn't afford the monthly payments.

3359 (26.4%)

Reader Comments (3)

by John - August 26th 2010 @ 9:12PM

Of course this matters...and probally more than anyone is giving credit to it now in the wake of the 27 % drop in sales. The comps now are driven by forclosures. If you remove even a few % of these..it will postitively affect prices. Whereas sales were expected to drop off after the Obama tax credits expired, and will surely pick up in the comming months as that vacume in buyers is slowly filled with some time and demand.

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by stampact1765 - August 27th 2010 @ 7:18PM

Prices at best will be flat for at least two more years. There is no good news in housing and no economic drivers for the the downward pressure to stop.

by mike deburcher - August 27th 2010 @ 1:55AM

Does anyone with 1/2 a brain believe anything in the news?? Get real, there is bad news and really bad news. Just remember that Goldman Sachs is not managed by catholics and protestants. Goldman is the only ones getting rich, at your expense. And you can take that to the bank!! Kind of funny really.

3 Comments / 1 Pages