Foreclosure filings in the U.S. fell in the first quarter to their lowest level in more than four years after lenders under legal scrutiny slowed actions against delinquent homeowners, according to RealtyTrac Inc.
Default, auction and repossession notices were sent to 572,928 properties, down 2 percent from the previous three months and 16 percent from the first quarter of 2011. It was the lowest quarterly tally since the fourth quarter of 2007, the Irvine, California-based data firm said today in a statement. One in every 230 U.S. households received a filing.
“The low foreclosure numbers in the first quarter are not an indication that the massive reservoir of distressed properties built up over the past few years has somehow miraculously evaporated,” RealtyTrac Chief Executive Officer Brandon Moore said in the statement. “The dam may not burst in the next 30 to 45 days, but it will eventually burst, and everyone downstream should be prepared for that to happen.”
The five largest banks agreed Feb. 9 to a $25 billion settlement after their foreclosure practices were subjected to a 16-month probe by all 50 state attorneys general. The accord removed some barriers to property seizures and cleared the way for lender actions to resume without releasing banks from individual or class-action claims or criminal liability.
Read the rest of the article at Bloomberg Businessweek
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