With a 28 percent increase in U.S. foreclosure starts this past January compared to December 2011, nearly 50 percent of the 230,000-plus loans entering the foreclosure process were repeat foreclosures, reported CNBC, March 6, 2012.
Repeat foreclosures, which are either failed loan modifications, or loans that banks attempted to modify but could not, reached an all-time high accounting for 47 percent of all foreclosure starts in the month of January. “Banks are modifying loans more aggressively now, but many of these mortgages simply cannot be saved, and the sooner they are processed and new buyers are found for the properties, the sooner overall home prices can recover,” CNBC reported.
There are more than 4 million delinquent homes that have sat untouched by banks. Many of the properties have remained delinquent for more than two years. Some of those loans are being worked through modifications as banks become more aggressive with their modification process, but most are finally entering the foreclosure process.