Banks May Soon Slow The Rate Of Foreclosures Again

During 2010, many consumers struggled with debt, late mortgage payments and other financial problems that led properties across the country to be put into foreclosure.

However, despite the recent lift on moratoriums, the pace of foreclosures could be slowing down do to some important legislative rulings.

For example, the highest court in Massachusetts recently ruled that U.S. Bancorp and Wells Fargo improperly foreclosed on many homeowners, as they were ultimately unable to prove they owned the mortgages on the properties, The New York Times reports. As a result of this ruling, and potential others like it, some homeowners will likely be able to go back into their houses in the coming months.

If this process continues, more banks would likely opt to modify the existing mortgage loans of homeowners with substantial debt to avoid foreclosures. This could lead to housing prices rising slightly due to less market availability, the news source says.

While this provides little immediate relief for homeowners, it signals that help may be around the corner. Even before these recent trends, foreclosure activity fell 21 percent in November, the biggest decline in five years.