Although we have seen a decline in foreclosures in recent months, there will be a turn for the worse for delinquent homeowners in upcoming months. This is due to the $26 billion settlement between the five big banks and state attorneys general over past foreclosure practices, which will enable banks to accelerate the foreclosure process.
These are the foreclosure stats: There were 69,000 completed foreclosures in January 2012, compared to 80,000 in January 2011, and 65,000 in December 2011. The number of completed foreclosures for the previous twelve months was 860,128. From the start of the financial crisis in September 2008, there have been approximately 3.3 million completed foreclosures.
Part of the slowdown has been due to borrowers fighting back against allegedly unlawful maneuvers by the banks and other abuses of foreclosure process. Now that the way has been cleared for them to resume without threat of continued actions by attorney generals, the pace of actions will likely increase. It is important to note, however, the settlement does not in any way prevent private parties from suing lenders and others who engage in wrongful or unlawful practices against them.