The Current State of Home Foreclosures
Foreclosure filings fell to a 44-month low in July. Processing delays continue to be the driving force behind the drop in foreclosure activity. July foreclosure activity dropped 35% from a year ago, marking the 10th straight month of year-over-year decreases in foreclosure activity and the lowest monthly total since November 2007. This string of decreases was initially triggered by the robo-signing controversy back in October 2010, which forced lenders to substantially slow the pace of foreclosing, but the downward trend in foreclosure activity has now taken on a life of its own. The processing delays, along with governmental foreclosure prevention efforts, may be allowing some homeowners to stave off foreclosure.
Unfortunately, the fall-off in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond. A stabilizing economy and improving job market are the long- term keys to a housing market recovery.
A total 212,764 properties received a foreclosure filing in July, a 4% drop compared with June. Filings were down 35% compared with July 2010. Filings include default notices, scheduled auctions and bank repossessions. In July, 59,516 properties received a default notice for the first time, down 7% from June and 39% from a year ago. And foreclosure auctions were scheduled on 85,419 properties, a drop of 5% from the month before and 37% from a year ago. Meanwhile, 67,829 properties were repossessed by lenders, down from 1% in June and 27% a year ago.
