What's Behind the Big Jump in Foreclosures?

The recent recovery in housing has led to immense optimism among investors that the worst of the housing bust is behind us. Yet recently, another spike in foreclosures has some wondering whether a new downturn could be right around the corner.

In the following video, Fool contributor Dan Caplinger discusses several reasons foreclosures are on the rise. Dan explains how a combination of backlogged courts and long foreclosure procedures in certain states forced many lenders to wait years to move forward, while in some cases, banks didn't want to foreclose until positive signs in the market started to emerge.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 16, 2013, at 2:22 PM, bingobing wrote:

    Well fool, from street level some of us got ride of all debts, auto, credit cards, student loans, back child support etc. Some then saved and qualified for another house i.e second home (at market adjusted value) and purchased the home. Then you dump your current negative equity home back to the bank, usually one yr. total to foreclose. I set currently in a 4 Br-2-1/2 bathe home on 2.5 acres for the same payment I was making on a double wide mobile home in a chump neighborhood. Did any crook on wallstreet get a credit score black eye after their ripoff? NO but I did, the banker punishing fool boy at street level, screw you banker, got-cha....

  • Report this Comment On June 16, 2013, at 2:46 PM, ShooterMcGavin7 wrote:

    Housing prices have increased because banks are holding onto their foreclosed inventory (they have squeezed supply, even if demand has not increased).

    Foreclosures are increasing because the median household has not seen significant improvement in their cash flows. Also, some homeowners may see this as their last opportunity to get out before rates start increasing again.

  • Report this Comment On June 16, 2013, at 5:45 PM, dadx wrote:

    in essance then the housing market hasn't recovered

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