ELI TENE WARNS OF INCREASED FORECLOSURE STARTS ON THE HORIZON
Released via PRWeb March 18, 2015
Peak Corporate Network Principal Eli Tene Warns of Increased Foreclosure Starts on the Horizon as a Result of Recent Increases in Loan Modification Re-Defaults
New data indicates rise in foreclosure filings for 2015 with possible links to nationwide wave of loan modification re-defaults associated with government-subsidized loan modification programs.
Citing a newly-released housing industry analysis, Eli Tene, Principal and Managing Director of the Peak entities, expressed concern over the uncharacteristic spike reported in January 2015 Notice of Default (NOD) filings. “While an improving economy and new regulations governing lenders and servicers have resulted in a steady decline in mortgage defaults since the height of the recession in 2008,” states Tene, “this new wave of mortgage defaults is a cause for concern. Foreclosure now looms for a new wave of distressed homeowners despite prevailing sentiment that the crisis is over.”
Tene alludes to analysis from Black Knight Financial Services released earlier this month reporting foreclosures at a 12 month high, with repeat foreclosures comprising over half of recorded starts with an increase of 11% over December 2014 starts. The analysis also reflects the stark contrast in foreclosure filings occurring in judicial and non-judicial states. “While it’s encouraging that foreclosure starts for January are nowhere near the levels we saw five years ago,” he says, “the dramatic increase in repeat foreclosures foreshadows a new era of defaults, and along with it a return to increased inventories of distressed assets to investor balance sheets.” Tene is quick to point out, however, that the real victims at the end of the day are not the investors, but the “distressed homeowners who could find themselves facing eviction once again.”