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Thursday, February 10, 2011

RealtyTrac: Foreclosure Activity Increases slightly in January

by Calculated Risk on 2/10/2011 09:56:00 AM

From RealtyTrac: Foreclosure Activity Increases 1 Percent in January

RealtyTrac® ... today released its U.S. Foreclosure Market Report™ for January 2011, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 261,333 U.S. properties in January, a 1 percent increase from the previous month but a 17 percent decrease from January 2010.

“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James J. Saccacio, chief executive officer of RealtyTrac. “Unfortunately this is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”
A total of 75,198 U.S. properties received default notices (NOD, LIS) in January, a 1 percent decrease from the previous month and a 27 percent decrease from January 2010 — the 12th straight month where default notices decreased on a year-over-year basis. January was also the fourth straight month where default notices decreased on a month-over-month basis, giving it the lowest monthly total for default notices since July 2007.
The decline in default notices is similar to the decline in serious delinquencies. However repossession activity will probably increase as lenders work through the legal issues and the huge backlog of homes in the foreclosure process.