Number of Loans in Foreclosure Reaches a Three-Year Low
Foreclosure Activity Rising in 2013
Both headlines above appeared in the media last week. The amazing part is that both headlines appeared on the same day and from the same media source (HousingWire)!!
The first headline commented on the recently released Office of the Comptroller of the Currency (OCC) study:
“Loan quality on first-lien mortgages improved significantly in the fourth quarter of 2012, with the OCC reporting that the number of loans in some stage of foreclosure fell below one-million for the first time in three years.”
The second headline reported on recently released study by RealtyTrac:
“In its first-ever U.S. Foreclosure Inventory Analysis, RealtyTrac revealed that 1.5 million U.S. properties were actively in the foreclosure process or bank-owned in the first quarter of 2013. This number was up 9% from the first quarter of 2012.”
Are both headlines correct? Yes. Each study is revealing information on a different set of data during a different period of time.
However, to a person who is not an industry expert, the headlines could be very confusing. If foreclosures are decreasing, future prices should increase. If foreclosures are increasing, there would be downward pressure on values. Knowing whether foreclosures are actually increasing or decreasing should have an impact on a consumer's decision to move forward. Any confusion could lead to a consumer making a poor decision.
In today’s real estate market, whether you are thinking of buying or selling, it is CRUCIAL for you to seek out the advice of a professional who truly is a market expert.