Foreclosures.com has reported that foreclosure rates have fallen in October. It also said that the October rates were just a continuation of the September fall. The report released also cited that the decline in the rates has not been observed since February of this year.
Pre-foreclosure fillings were down by 7% compared to September’s rates and 10% to that of the high disturbing rates of August’s. Given that the pre-foreclosure rates are a preview of possible good things to come, McGee was reported to have said that the latest rates are welcome news.
Change in the number of REO properties was also noted by ForeclosureS.com. The report said that the 22% rates in September fell down to 84,286 properties in October. The website believes that the October rate for REO properties is the lowest monthly total since the end of May 2008.
However, McGee expresses certain concerns on the future rates of foreclosure properties. She said that the positive changes we have witnessed this October might be put on a stall. She cited that the special programs that lenders commonly offer to home owners can cause a halt to the decline of the rates. McGee explained that such programs will not rescue borrowers from the problem.
Given the state of loans, she said that the process for qualifying units as soon-to-be foreclosure homes will just be delayed and not prevented by the special programs. Despite her observation, McGee is still optimistic.
But analysts begged to differ; they said that there are still a lot of factors that could contribute to the stoppage of the decrease in rates. Local legislations, in particular, can only put a temporary hold on foreclosure properties. Take, for example, the case of Massachusetts. The State’s foreclosure rates soared to 365 percent between August and September after a fall in rates from the previous months. Analysts said that the temporary decrease was made possible only by the local legislation requiring lenders to give their borrowers a 90-day right to work on their mortgage problems before initiating procedures to foreclose homes.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.