National Foreclosure Update
Banks Mired in Bad Loans & Paperwork Woes Credited For Slowing Pace of Foreclosures For the month of July, 2011 new foreclosures (number of first notice of default) dropped to less than 60,000 (7% less than June, 2011). The July, 2011 number of 60,000 new foreclosures is 39% fewer new foreclosures than in July, 2010. Reasons for the sharp decline in new foreclosures include regulatory red tape involving the paperwork underlying many mortgages as well as National Banks wanting to spread out the "pain" of posting non-performing loans as financial losses. Furthermore, banks are not eager to flood the market with the many thousands of foreclosed homes due to the fact that home values and market prices would drop further still... and prices dropping even more would mean a higher…