National foreclosure activity rose again in August, just over 4%, and Bank reposessions increased 3% from the month before, which is an all-time high.  According to this CNBC article and RealtyTrac, “There is a buildup in delinquent loans that are not in foreclosure, which means that banks and lenders are slowing the process to avoid a drop in home prices.  It’s a managed slowdown more than anything else.”

http://www.cnbc.com/id/39192246/

So, even with this buildup of loans that are still not in foreclosure, the national and local foreclosure scenes are still at an all time high.  What does that leave for right around the corner?  More of the same.  On the premise of trending alone, taking a look at the Maricopa County foreclosure statistics doesn’t leave much question as to where things are going.

http://www.foreclosureradar.com/arizona/maricopa-county-foreclosures

Foreclosure filings are on the rise, the amount of properties going back to the bank at auction are increasing, the timeline leading up to foreclosure is increasing (which may or may not be a positive thing to look at), and the amount of properties being purchased by 3rd party bidders is staying pretty steady.

04013 – Foreclosure Outcomes

Since more and more properties are being sold as Bank Owned – REO properties, the market values of properties in these neighborhoods will continue to decline.  If the lenders are in a catch up phase to avoid the drop in home pricing, it means they will have to slash the inventory they currently have on the market in the form of REO’s to get these properties off their “books.”  RESULT:  Lower Home Values.

Either way, with the National and Local Foreclosure scene looking grim, the tactics the lenders are taking in order to rectify the situation doesn’t seem to be the solution that consumers and economists are looking for.  What should be their best approach to keeping home values steady?  Agree to take market value offers instead of declining them and taking properties back at auction.  Is the formula for this success just too simple, or do the bright minds of these institutions just feel the need to complicate things even further?