According to CNN.com, foreclosure filings were down 8% in November. As the article indicates, this number may be a bit artificial as mandatory mediation and other remedies delay the filing process. At the same time the S&P/Case-Shiller home price index has shown a small increase in property values for five consecutive months. This has slightly reduced the number of homeowners whose mortgages are valued higher than their homes.
As long as housing values continue to increase steadily, it would stand to reason that many people facing foreclosure could completely avoid it or have a stronger bargaining position for a loan modification. Any recovery, if sustainable, should be gradual, but it's nice to hope for a better market in 2010.
