Foreclosure Numbers Improve Amid Dismal Home Sales

Does a shred of good news have an impact amid a forest of disastrous reports? The Mortgage Bankers Association reported that the number of loans in the foreclosure process declined in the second quarter of 2010 for the first time since 2006. The question remains whether this figure matters in light of the recent 27 percent decline in existing home sales. The answer is probably yes and no. The good news is that most of the subprime loans that contributed to the housing crash have worked their way through the system. The bad news is that many homeowners with conventional loans are now sliding toward foreclosure due to the persistently high unemployment rate. While nobody really knows whether home sales will recover in the coming months, it's nice to know that not every every market indicator is pointing toward the cellar.