The mortgage industry is a bit bleak at the moment and the need for change is obvious. Despite differing opinions as to how the market is best served for recovery, we can all agree that recovery is going to take time and a coordinated effort among many.
A Glimmer Of Hope
Some say the worst of the foreclosure crisis is behind us, while others are hesitant to agree. However, the data suggests that the number of new foreclosures has dropped significantly in recent months along with an increase in alternatives like short sales and loan modifications. This positive trend reported by the data has much to do with several efforts already in place for change such as the Making Home Affordable Programs and lender incentives resulting from the mortgage settlement.
It doesn’t take a trained industry analyst to see that the positive trend has yet to prove its longevity. An issue that continues to plague the recovery efforts are the massive amount of stagnant foreclosures saturating the market. These homes make it difficult to maintain home values in a neighborhood and are often avoided altogether by potential buyers. Further, new mortgages have not yet been evaluated to ensure lenders are adhering to the outline practices. Only time will tell if lending practices have, in fact, made the change they have promised.