Fewer foreclosures reported in October
Posted on Wednesday, December 19, 2012 at 4:47:20 PM
In the wake of the housing market collapse, a foreclosure wave swept through much of the country, resulting in millions of repossessions. However, as a greater number of consumers find their financial footing, the foreclosure rates continued to decline in October.
During the month, foreclosure starts plummeted 24 percent, according to a report from Hope Now. This is believed to be the direct result of more than 72,000 receiving proprietary loan modifications and 16,000 receiving HAMP modifications.
"The combination of loan modifications and short sales, completed by the industry in the month of October, means that close to 130,000 homeowners received a permanent, alternative to foreclosure," said Hope Now executive director Faith Schwartz.
Although foreclosure activity declined, the number of short sales during the month actually increased 13 percent from September, the report said. During the course of the month, there were more than 38,000 completed short sales.
Short sales have become an increasingly popular alternative to foreclosure. Not only are they less financially damaging to a borrower, but the transactions also help lenders save money in the long-term.