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Rising foreclosure activity could mean more moving families

September 21, 2010 - Relocating homeowners are finding more opportunities than ever to purchase a discounted home given the nation's surging foreclosure inventory.

The latest foreclosure data from RealtyTrac reports that foreclosure auctions were scheduled on 147,003 U.S. properties in August, the second highest monthly total after March's peak of 158,105. The August figure was 9 percent higher than the previous month's total and a 2 percent increase from August 2009.

Additionally, lenders handed out 96,469 default notices last month, a 30 percent increase on a year-over-year basis. Banks also repossessed 95,364 properties in August, setting a new all-time high that was 2 percent greater than May's previous peak of 93,777. Though that was a troubling sign that more people may be forced into moving because of foreclosure, the report did indicate that lenders were doing a better job of handling foreclosure inventory. That might mean banks are catching up with a severely backed-up inventory.

August brought "virtually the same number of new default notices and bank repossessions for the month - a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers," said James Saccacio, RealtyTrac's CEO.

Despite being a difficulty for mortgage lenders, foreclosures do present an affordable homebuying opportunity for moving families. Freddie Mac recently announced that its new First Look program will give homebuyers a 15-day head start to purchase a new home before investors can buy it.
 

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