Released via PRWeb March 4, 2013
Despite recent housing data suggesting that foreclosures nationwide have bottomed out, a significant number of Americans still face the prospect of losing their homes.
In a recent statement, Eli Tene, Principal and Managing Director of the Peak entities, urged caution in assuming that the foreclosure crisis is behind us. “While an improving economy combined with government intervention and lender workouts has significantly reduced the number of homeowners in mortgage default since the height of the recession in 2008,” states Tene, “the problem hasn’t gone away. Thousands of Americans are still receiving Notices of Default each month in spite of the current optimism of a complete housing recovery touted in the press.”
Tene has identified two possible causes contributing to the discrepancy between prevailing sentiment and the actual facts regarding foreclosures. First, industry data consistently aggregates information on foreclosures, providing a broad averaging of foreclosure activity, whereas granular data on a state-by state basis doesn’t necessarily mirror the national trend.
Tene cites newly enacted foreclosure laws at the state level over the past two years as a contributing factor in the drop of default filings. “California, Florida and Nevada arguably had the highest foreclosures rates in the nation,” he says. “Yet recent statistics show a relationship between various state legislative actions and a slowdown in foreclosures, including Nevada requiring lenders to prove their rights to foreclose in 2011 and California’s Homeowner’s Bill of Rights enacted in 2013. So while these laws inevitably contributed to a dramatic decrease in completed foreclosures which is reflected in lower default-filing statistics,” Tene points out, “in reality, we believe that there are still eight to ten million units that comprise a substantial ‘shadow inventory’ of housing supply still subject to foreclosure." He also notes that California and Nevada follow non-judicial procedures for filings. Judicial states, according to Tene, are still coping with pending cases simply caught in the court system.
Read the full PRWeb press release here.