Foreclosure filings continue their
downward spiral, dropping to the lowest level in January since April
2007, according to RealtyTrac's latest report.
Filings — which include notices of default, scheduled auctions, and
bank repossessions — dropped 28 percent in January year-over-year.
"We're now well past the peak of the foreclosure crisis," says Daren Blomquist, spokesman for RealtyTrac.
Still, the foreclosure problem has a ways to go: Filings remain at
double the pace of 2005, and foreclosure auctions are on the rise in 26
states.
"It's likely that by this time next year, we'll start to see 2005-type, pre-crisis numbers again," Blomquist says.
The decrease in foreclosure starts in January was largely attributed
to California, which saw a significant drop last month. Due to a new law
in California that offers borrowers in default more protection, the
state saw foreclosure filings fall 62 percent in January. The big drop
made it the first month since January 2007 that California was not the
leader in the nation in foreclosure filings — that state has been
replaced by Florida.
Meanwhile, RealtyTrac also reported that bank repossessions were down
24 percent in January from year-ago levels, reaching their lowest ebb
since February 2008 and putting it below half of the record amount set
in September 2010.
Source: RealtyTrac and “Foreclosure Filings Fall to Lowest Level Since 2007,” CNNMoney (Feb. 14, 2013)