Foreclosures Jump

The housing market may soon experience round number 2....as foreclosures have recently jumped dramatically.

U.S. home foreclosures jumped in the third quarter and banks' efforts to keep borrowers in their homes dropped as the housing market continues to struggle, U.S. bank regulators said on Wednesday.

The regulators said one reason for the increase in foreclosures is that banks have "exhausted" options for keeping many delinquent borrowers in their homes through programs such as loan modifications.

Newly initiated foreclosures increased to 382,000 in the third quarter, a 31.2 percent jump over the previous quarter and a 3.7 percent rise from a year ago, the Office of the Comptroller of the Currency and the Office of Thrift Supervision said in their quarterly mortgage report.

See it here; http://www.cnbc.com/id/40840667

So what's happening? In layman's terms, the banks made their best efforts to keep people in their homes by restructuring and giving them leeway on repayment options...and that's not helping either. People are simply tapped out.

Hat tip to Mike S.