Housing market news continues to be mixed right now on the latest foreclosure numbers. After showing that existing home sales increased in April, as did new home sales, the foreclosure data was released. For Quarter 1 of 2009, the data shows a sharp increase in foreclosures. Indeed, the jump between foreclosures in Quarter 4 of 2008 and Quarter 1 of 2009 was the largest recorded quarter to quarter jump.
The reason for this sharp increase probably has to do with the fact that in Quarter 4 of 2008, many mortgage lenders offered a moratorium on foreclosure. These lenders did so in order to promote holidays with less stress for borrowers. However, the moratoriums were ended in Quarter 1 of 2009, and now we are seeing an increase in foreclosure.
Foreclosure starts are also on the rise. Foreclosures are likely to continue until the economy picks up. However, there may be some help from government programs put into place to help ease foreclosure. Loan modification — if mortgage lenders will participate in programs set up for the purpose — could help prevent some foreclosures.
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[…] to the U.S. housing market and, by extension, to the rest of the U.S. economy. And the tide of foreclosures is not expected to abate any time soon. Even with efforts by the President and his advisers to try […]