According to Lynn Adler of Reuters, 1.65 millions properties, or one in every 78 households, made foreclosure filings that included "notice of default, scheduled auction and repossession." Although this is an eight percent increase from the first half of last year, the number of foreclosures decreased by 4 percent from the second half of 2009. James Saccacio, CEO of RealtyTrac, said that one reason for the decrease was due to the lenders' preference of short sales and loan modifications rather than foreclosures.

Nevertheless, the article took on a more pessimistic approach, with Adler writing that "the root problems of job losses and wage cuts persist, making a sustained U.S. housing recovery elusive." Banks also have repossessed a record number of properties, 269,962 in the second quarter, although they slowed foreclosure notices, as oppose to the 100,000 in 2005.

Adler additionally wrote yesterday that the high number of foreclosures and an unemployment reaching almost 10 percent (currently 9.6 percent in New Jersey) contributed to the lack of home-buying applications. The amount, in fact, sunk to a 13-year record low as" requests for loans to buy homes dropped 3.1 percent in the week ended July 9" while refinancing applications decreased by 2.9 percent.

Taylor Woods, president of Genpact Mortgage Services in Irvine, California, further explains this reason. He said, "With as much turmoil as there is around loans that need to be modified, short sales, foreclosures -- all of those signs really indicate to buyers and investors that there will be better prices come tomorrow."