And the Bad News… It’s probably not because there are fewer homes in default.
A total of 75,198 U.S. properties received default notices in January 2011, a 1% increase from December, the previous month, and a 27% decrease from January 2010.
That’s 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.
Says James J. Saccacio, chief executive officer of RealtyTrac:
“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.
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.”
Sadly, repossession activity will probably increase as lenders work through the legal issues and the huge backlog of homes in the foreclosure process.
Which means for home prices?? You got it. These foreclosured-bank-owned-homes will continue to push home prices down as banks price them aggessively just to get them sold and off their books.
Source: Realty Trac