Overall foreclosure starts were down 2.6 percent in April, according to a report by Lender Processing Services, falling to roughly 180,000, though another report shows starts rose.
The Federal Housing Finance Agency's report for April indicates a 73 percent increase in new foreclosure activity. The jump in foreclosure starts for the FHA was attributed to the high volume of loans that were originated by the FHA in 2008.
"In 2008, when the loan origination market virtually dried up, the FHA stepped in to fill the void," explained Herb Blecher, senior vice president for LPS Applied Analytics.
Foreclosures have been steadily declining following the robo-signing scandal which occurred in 2010. Since processing delegation was implemented, though the number of foreclosures resulting from a halt in processing has been slowly working through the market.
Numerous distressed homes on the market means affordable opportunities for consumers. However, LPS' report showed that foreclosure sales were lower for the month of April, decreasing nationally 2.6 percent.
Foreclosed homes still continue to be valuable investment for the right buyer in the housing market today. Although they do have some risks involved such as previous owner issues or processing difficulties, they can be a good investment because they sell at significant discounts to market prices.
In the National Association of Realtors' most recent existing home sales report, foreclosures were selling at an average discount to standard market prices of 17 percent.
In today's environment, the low mortgage rates combined with the lower foreclosure price can provide an opportunity for many interested buyers.
