Over the past year or so, foreclosure filings have declined in New Mexico, as elsewhere around the nation, particularly in those states that utilize judicial foreclosure. Doing foreclosure mediation, among other things, I was well aware of this trend. It is generally chalked up, by practitioners, to the banks' regrouping efforts necessitated by widespread problems with foreclosure documentation and affidavits, and to a lesser extent
controversies regarding loan origination practices, and settlement efforts concerning both practices.
controversies regarding loan origination practices, and settlement efforts concerning both practices.
As I've written previously, at any given time the foreclosure filing rate depicts only a portion of the picture. Generally, there is a separate "shadow inventory" of properties for which home owners are "underwater" or behind or chronically late in their payments, but no default notice or other formal foreclosure activity has yet occurred. During the temporary decline or hiatus in foreclosure filings in New Mexico and elsewhere, this shadow inventory has continued to grow.
Last Friday, the Albuquerque Journal reported that foreclosure activity in New Mexico and 20 other states with judicial foreclosure systems was up in February 2012. Moreover, this was the highest number of states with increases since November of 2010. See Journal, N.M. Foreclosure Activity Up, citing a 3/15/12 RealtyTrac Report. In New Mexico, February saw a 16% increase in foreclosure activity, with most of that increase representing front end activity, meaning issuance of an initial default notice.
Interestingly, this dramatic increase in the activity in some states, and increase in number of states showing such a dramatic increase, is balanced by an overall 8% national decline in foreclosure. However, this was the lowest national decrease since October 2010, and the Journal reports that "[t]he drop was driven largely by declines in the housing bubble states of Arizona, California and Nevada."
The take away lesson appears to be that the real estate "crisis" is still a big problem, at the least, and a continuing obstruction to the national economic recovery.
If you are interested in mediation services for a foreclosure matter (residential or commercial), please contact Pilar Vaile, P.C. at (505) 247-0802 or info@pilarvailepc.com.
