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.

Many investors are scared about investing in big banking stocks after the crash, but the sector has one notable stand out. In a sea of mismanaged and dangerous peers, it stands out as The Only Big Bank Built To Last. You can uncover the top pick that Warren Buffett loves in The Motley Fool's new report. It's free, so click here to access it now.


Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

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

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2491830, ~/Articles/ArticleHandler.aspx, 9/30/2014 2:17:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement