If you thought... or hoped... or dreamed... or begged that the foreclosure crisis would be over soon, that appears to have just been wishful thinking.
According to the Federal Reserve Bank of New York, 2.7% of current mortgage balances transitioned into delinquency during the third quarter of this year.That’s up from 2.6% that became newly delinquent in the second quarter. The rise follows a full year of declines in delinquencies.
DSNews reports that "according to the New York Fed’s report, about 457,000 individuals received home foreclosure notices on their credit reports between July 1 and September 30, 2010. Officials say this represents a 5.5% decrease from the second quarter and a 6.4% drop from a year earlier." However, unless modification efforts become more successful, those figures will likely rise given the new wave of delinquencies.
All in all, we still have a long way to go until we are out of the foreclosure mess and see real estate return to normal (home values increasing by about 1-2% more than inflation). Joe Manausa thinks that we have another five years to go before values return to the levels we saw this summer. I'm inclined to agree (or maybe even be more pessimistic). What do you think?
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