RealtyTrac just released January’s foreclosure report, and the number of homes in some stage of foreclosure rose 57 percent from January of last year.
And it does not appear that the foreclosure train is showing signs of slowing down anytime soon; - the rate of foreclosure filings rose 8 percent from December.
As James J. Saccacio, the chief executive officer of RealtyTrac noted: "January's foreclosure numbers demonstrate that foreclosure activity is continuing on its upward trend, substantially increasing from a year ago in many states"
Georgia ranked in the top ten of states with the highest foreclosure activity, with over 10,000 reported properties in some stage of foreclosure.
As a closing attorney who works with investors, what do I think we can, and should, take from this?
First: while a number of governmentally-sponsored foreclosure prevention plans have been enacted, they do not seem to be having any effect on the overall number of foreclosures.
Second: these monthly increases in foreclosures should not surprise anyone, and will most-likely continue as more and more adjustable-rate mortgages reset to higher rates.
Third: Increasing number of foreclosures represents an increasing number of REO properties on the market that investors will have to compete with as they try and sell their properties.
Fourth: Increasing number homes in foreclosure means that there are more potential deals out there, and investors can really take their time and cherry-pick the best ones.