Home prices are coming back up and foreclosures are falling. Here's why.
USA Today reports the frequency of foreclosures is falling…
Foreclosure activity has been dropping for nine consecutive quarters. There were expectations it would pick up this year following a mortgage servicing settlement earlier this year between big lenders and federal and state officials.
That hasn’t happened. Instead, home prices have been rising, up 4.6 percent in August from a year ago, CoreLogic says.
There are several reasons, according to USA Today: Foreclosing is now a slower and more complicated process in some states, less-damaging short sales are often happening instead of foreclosures, and more people are keeping up with their payments thanks to a recovering (however sluggish) economy.
Despite the overall trend, many states still have a huge inventory of foreclosures to work through, including Florida, New York, New Jersey, and Illinois.