Foreclosure Rates on the Rise

Indianapolis foreclosure rates have taken a turn for the worse and rose recently to 3.58 percent of all mortgages. This increase is up from last year’s figure of 3.19 percent according to mortgage tracking service Corelogic, which tracks national foreclosure data. Indianapolis has remained higher than the national foreclosure rate, which was 3.44 percent in July.
There are a number of indications that homeowners are still in a very tough financial situation. The percentage of mortgages over 90 days delinquent rose to 6.41 in July, up slightly from the June rate of 6.39. This is the first increase in the month-to-month tracking of these statistics since January according to the Corelogic report. One good sign is that the delinquency rate overall is down 6.98 percent this year from July 2010.
Robo-signing is a widespread problem in Indiana and has a direct affect on many of the problems that homeowners are having across the state. “Robo-signing” is the term given to the problem of low-paid workers signing important documents that they haven’t read, are not qualified to read or are not qualified to sign. Many of these documents found in recording offices were not only foreclosure documents but thousands of other homeownership documents unrelated to foreclosures.
The scandal and investigation that followed has revealed more than 8,000 suspect documents in Allen County alone, according to the Journal Gazette. The inability to verify documents due to signing concerns and fraudulent documents can delay home sales, further adding to the already strained housing market.