The rate of new foreclosures has reached its lowest level since spring of 2008, according to the Wall Street Journal.
While this sounds like a good thing, optimists should proceed with caution. The main factor in this slowing of the foreclosure rates is not an absorption of inventory into the market (which would be a genuinely good thing for the stabilizing of home values), but the fact that banks are simply proceeding more slowly due to an agreement to restructure their admittedly-faulty systems for processing foreclosures.
You may ask, Is it even possible for banks to resolve the foreclosure crisis more slowly than they already are? The answer, it seems, is a resounding “Yes”.
