Falling Levels of Foreclosures

Falling levels of foreclosures are in progress.  Home repossessions and foreclosure filings are now at the lowest they have been since 2007. 

In 2011 the total amount of filings including default notices and repossessions were down 33 % to just 2.7 million across the nation, according to RealtyTrac.  For every 69 homes, one was filed as a foreclosure or repossession.  That’s much better than 2010, which peaked when 1.05 million homes were repossessed.

Over the past five years there have been 4 million homes that have been lost to foreclosure.  So, this decline is a very positive note for the housing market.  However, much of this is due in part to the “robo-signing” scandal that broke in late 2010.

In 2011, banks spent more time making sure paperwork was legal and proper with all the I’s dotted and T’s crossed, which created a backlog in the foreclosure process.  The average foreclosure time jumped from 305 days to 348 days, and those numbers are expected to be higher during 2012.

The dramatic drop in foreclosure activity for the year was a direct result of foreclosures being in the delay mode during the year.  But, none-the-less, the market is picking back up and things are leveling out across the nation, which is a positive sign for real estate.

Originally posted at: http://activerain.com/blogsview/2726121/falling-levels-of-foreclosures