Foreclosures Drop, But Logjam Ahead

RealtyTrac reports a 10% decline in foreclosures for January, compared to the previous month, yet the number is 15% higher than January 2009.  “January foreclosure numbers are exhibiting a pattern very similar to a  year ago: a double-digit percentage jump in December foreclosure activity  followed by a 10 percent drop in January,” said James J. Saccacio, chief  executive officer of RealtyTrac  “If  history repeats itself we will see a surge in the numbers over the next few  months as lenders foreclose on delinquent loans where neither the existing loan  modification programs or the new short sale and deed-in-lieu of foreclosure  alternatives works.”

And while the well-intentioned Home Affordable Modification Program (HAMP) has targeted over 3 million borrowers, only 900,000 trial modifications have been extended, with only 66,000 of those having been made permanent.  At a success rate of 7%, it’s tough to predict anything but a foreclosure log jam ahead… 

http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&itemid=8533