Mortgage foreclosures in the United States increased sharply in the third quarter of 2011 after a temporary suspension of foreclosure practices was lifted off of banking institutions. The 21 percent increase from the previous quarter brought national foreclosure levels back to the historically high levels that the mortgage industry has been seeing in the aftermath of the housing crisis.
San Diego foreclosure defense attorneys noted that part of the rapid spike in foreclosures is that banks are working more aggressively to process foreclosures for seriously delinquent loans. Now that the suspension period has been lifted, banks are working to catch up on mortgages entering into foreclosure proceedings.
The foreclosures report, which was produced by the Office of the Comptroller of the Currency, said another reason foreclosures have increased is that many delinquent loans are faced with no alternatives other than foreclosure proceedings. The number of seriously delinquent mortgages also increased as stalled foreclosure processes allowed for past-due mortgages to become even more delinquent. Seek assistance from real estate closing lawyers if you’re still having trouble.
Despite the grim foreclosure news, there is information to suggest a more optimistic future for the housing industry. Although foreclosures spiked in the third quarter of 2011, it was still 11.8 percent lower than the third quarter of 2010.
But mortgages that are current remained steady from the second quarter in 2011, suggesting that more home loans are stabilizing after the housing crisis. Meanwhile, Bank of America Corp. and other major financial institutions are currently negotiating settlements for their improper foreclosure practices.