Trulia sees fewer delinquencies, more foreclosures in 2012 « HousingWire

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http://www.housingwire.com/2011/12/28/trulia-sees-fewer-delinquencies-more-foreclosures-in-2012

There have been numerous reports indicating that housing values are increasing and mortgage lending is increasing.  See here and here for stories about the Tampa Bay Area housing market. But, now that banks have worked their way through the “robo-signing” issues that put a hold on foreclosures last year, there is expected to be an increase in foreclosure lawsuits as the banks work through the back log of cases. See here. These increased numbers of cheap foreclosed homes coming onto the market should put downward pressure on home values countering the anticipated recovery. One way to deal with this is with mortgage principal write downs. See here and here. Will 1 million home owners getting $20,000 write downs be enough? This number is far less than the number of anticipated new foreclosures (See here), and $20,000 on a home that has lost up to 40% of its value seems inadequate.

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