First, the good news: the number of recorded foreclosure sales during August actually fell, according to data released Thursday by the coalition of mortgage servicers, counselors and investors known as HOPE NOW. The drop — from 91,902 foreclosure sales in July to 86,594 in August — was the first in the 14 months that group has been aggregating data from key servicers.
The not-so-good news, however, is that the drop may say more about servicing capacity and decisions than it does about a potential shift in the nation’s housing and economic woes, according to various sources. Equally troubling is data the continues to show a growing number of prime borrowers in distress.
So, foreclosure sales are about 100K/month. Are foreclosure sales different than foreclosures? Well, we have the concept of 'workouts'.
HOPE NOW said that while the volume of foreclosure sales fell, so too did the number of workouts, from 192,220 in July to 188,931 in August. The result was only a slight increase in the number of workouts completed per foreclosure sale, as a result, to a ratio of 2.18 in August compared to 2.09 in July; but any increase should be welcomed by consumer advocates as evidence of progress by lenders and servicers.
Interesting, so the numbers quoted earlier must refer to workouts, not foreclosure sales. These overall numbers seem low, however, as the california numbers are such a substantial portion of the total, but perhaps that is accurate.
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