The foreclosure rate is expected to rise during the course of 2012. However, according to the Washington Post, this may not be a bad thing.
The newspaper says this expected surge will work to get low-priced properties back onto the market. With the presence of these foreclosed houses, prospective buyers may be able to make the transition to homeownership at a bargain price - cutting down on the vacancy rate.
Recent events, such as the robo-singing scandal, caused significant delays in the foreclosure process. While this was a positive event for distressed and delinquent homeowners, it only delayed the inevitable, further slowing the real estate industry's recovery.
However, in the wake of the multibillion-dollar settlement between the nation's largest mortgage lenders and state attorneys general offices on behalf on homeowners who were wrongfully foreclosed on, nothing is holding these lenders from reviving the process.
According to RealtyTrac, one in every 624 homes across the country were in some stage of foreclosure in January 2012. With the expected upswing, this ration is expected to increase as the market purges itself of distressed borrowers.