Foreclosure starts moved up 20 percent in August over July, posting their highest monthly levels of the year. But there are signs of improvement: Foreclosure starts were down more than 12 percent compared to August of last year, according to Lender Processing Services in its latest report.
What’s more, “first-time” delinquencies -- loans that have never been delinquent before -- made up only a quarter of all new delinquencies, which LPS says is a sign of an “improving trend for new problem loans.”
Overall, about 4 million loans are 90 days or more delinquent or in foreclosure, shrinking to 2008 levels.
Jay's Notes: More news that while first time delinquencies appear to be on the mend, there is still an opportunity for investors that want to capitalize on the 'shadow inventory' that should be coming to market in the near future. B of A is actively pushing some of their inventory through by foreclosure, short sale, or deed-in-lieu efforts and other banks may be preparing to do the same.