In response to:

Over Half of Foreclosures Now ‘Repeats’

Jim88 Wrote: Oct 22, 2012 9:08 AM
Each delinquent loan on the banks books becomes a Scheduled Item on their books, as well as any REOs they have on their books, so by holding off on foreclosure keeps the REOs off their books, and the bank examiners see only one red flag for the bank, in delinquent debts trying to be worked out right off the bat, since the first thing they look at is the list of Scheduled Items, before they start their audit. If you foreclose, as a bank, you better have a buyer(s) standing in the wings to take that foreclosure off your hands by the time the hammer falls at the sale.
scott s. Wrote: Oct 22, 2012 4:44 PM
OK if loan is on the banks books, but how many of these are securitized into CDOs and the bank is acting as a servicer for a fee?

A fundamental question with both the Bush and Obama approaches to the mortgage foreclosure crisis is to what extent are policies simply putting off the inevitable?  Are “permanent” solutions being offered, or are we just recycling the same borrowers through one foreclosure after another?  Recent data from Lender Processing Services (LPS) sheds some light on the question.

The most recent LPS data, covering to the end of August 2012, shows that for the first time, over half of foreclosures are for borrowers that were previously in foreclosure.  Now there are several ways to read the chart below.  On...