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.
