Although foreclosures are down this year there may be a “spike” in the foreclosure rate in the coming months.
In April, 158 notices of mortgage default notices were filed. This is a 33 percent decrease from March of 2011. Great sign! However, default notices in Ada County increased 7% with 335 notices throughout April and 312 in March. Upon combining default filings for Ada and Canyon counties, the overall foreclosure filings in comparison to last year have decreased (1,565 filing in March of 2011 in comparison to 2,405 during the same period in 2010)
Charlie Nate with Idaho Data Provides stated that the foreclosure numbers are lower than the same period last year yet may increase again this coming summer. He also mentioned that foreclosures are down in 2011 yet are poised to rebound anytime upon the banks wrapping up their robo-signing issues.
Speaking of the robo-signing . . . Idaho joined a multi-State investigation which revied the amount of loan services that may have generated documents with errors associated with them. “Robo-signing” is the process of foreclosure documents being signed without them being reviewed. Some of the documentation may have also been signed without the use of a notary.
Some foreclosure filings were stopped last year due to the Robo-signing issues yet this could cause a wave of foreclosure filing this year. Nate stated that more foreclosure inventories may be released this year which could increase the number of filings in both Ada and Canyon Counties.