Rising unemployment and higher interest rates may be to blame for another record month. The economy may be leveling off, but a new wave of foreclosures is starting to build this summer. Foreclosures hit a record in 2009. This year could be worse.
Housing analysts attribute at least some of the rising level of foreclosures on the jobless rate, which now stands at 9.4 percent. But the economy alone is not to blame – a large number of adjustable-rate mortgages are coming due for higher interest rates.
In addition, with real-estate values stabilizing, some analysts think some mortgage-servicing companies think it’s now more profitable to foreclose on a house than to make a loan modification. In California, the largest center of foreclosures, banks have beefed up their foreclosure departments, an indication that they expect unfortunate home losses to continue.
Read the rest of the article at the Christian Science Monitor
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