REAL Trends The Trusted Source

This past week over 40 states reached an agreement with the five largest mortgage servicing firms to settle suits alleging improper foreclosure processes. The estimated settlement is above $25 billion.

Several housing forecasters say that now that the above is settled the number of foreclosures coming onto to the market will increase in 2012. One source indicates the number of homes entering final foreclosure may be 300,000 to 500,000 units higher in 2012 than in 2011. The thinking is that with the settlement out of the way mortgage servicers will move to start clearing out those homes that effectively foreclosed but where final action has not taken place.