Foreclosures Continue Slowly But Surely in Indiana and Nationwide

Americans eager for the return of a healthy housing market will likely be waiting for quite awhile, according to recent numbers from housing industry groups. Foreclosures nationally are slowing slightly, but there is still a great deal of homes somewhere in the foreclosure process. Indiana in particular is still dealing with a distressed housing market. Nationwide, Indiana had the largest percentage increase of home foreclosures during the first half of 2012 compared to last year, a 32 percent rise, according to RealtyTrac.

CoreLogic reported that there were 60,000 foreclosures completed in the U.S. last month compared to 80,000 in June of 2011. Although this is a promising trend, an area of greater concern is the current foreclosure inventory. This number represents all the homes somewhere in the foreclosure process. Last month it was 1.4 million homes, which translates to 3.4 percent of all mortgaged properties in the country.

Although the foreclosure inventory has also been declining, the slow pace of the decrease indicates that banks are in no rush to move properties through the system. Some experts worry this "shadow inventory" may further depress the housing market once properties are finally put up for sale by the banks.

After the "robo-signing" scandals some banks imposed temporary moratoriums on foreclosures. These self-imposed moratoriums have now been lifted, but state and federal regulators continue to closely monitor the foreclosure process likely resulting in longer timelines.

If you are a homeowner facing foreclosure there are several options available to save your home. These include loan modifications, bankruptcy and fighting foreclosure through litigation. An attorney can provide further information about the best course of action for your specific situation.

Source: Wall Street Journal, "Foreclosure Machines Still Running on 'Low'," Robbie Whelan, July 31, 2012.