Repeat Foreclosures Jumped in January
The number of repeat foreclosures inched higher in January compared to a year ago – the first time in more than two years this has occurred, according to a new report by Black Knight Financial Services.
More in foreclosure news: High-end homes used to see fewer foreclosures than the rest of the market. But now that trend is reversing.
Repeat foreclosures occur after a home owner begins the foreclosure process, but is then able to keep the home through either a loan modification or new payment program. The situation becomes a repeat foreclosure when, despite the modification, borrowers still are unable to make their payments and the home falls back into foreclosure.
New repeat foreclosures ticked up 11 percent in January from December and accounted for more than half of all new foreclosures, according to Black Knight Financial Services. The uptick was most apparent in “judicial” states – where a judge’s approval is required for a foreclosure and backlogs of foreclosures are more common.
Some housing analysts aren’t shocked by the uptick. "So much tinkering was done with defaulted borrowers over the last five or six years,” Guy Cecala, CEO and publisher of Inside Mortgage Finance, told CNBC. “It's not surprising they're running into problems again."
Source: “Housing’s New Worry: Repeat Foreclosures Return,” CNBC.com (March 9, 2015)
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