Daily Archives: August 6, 2013

Filing Bankruptcy Stops Foreclosure

house        July bankruptcy filings are down 10% from last year, but up 5% from last month.  Possible reason?  My favorite industry, those mortgage companies, are at it again.

Foreclosures had been held down for years, because the banks knew the more homes they foreclosed, the more home prices would go down, not only costing them more money, but also driving more people into foreclosure.

So, the good news of the rebound in home prices has caused the mortgage companies to ramp up foreclosures again.

From the linked to Bloomberg story:

Banks are more willing to move to the final stage of foreclosure because there is sufficient demand and prices are improving, said Eric Workman of Tinley Park, Illinois-based Mack Cos., which aggregates single-family rental homes and resells them to individuals and institutional investors. U.S. home prices advanced almost 11 percent in the year through March, the biggest 12-month gain since April 2006, according to the S&P/Case-Shiller index of values in 20 cities.

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