Foreclosure Filings Down, But Dip Won’t Last, Report Says

Foreclosure filings dropped 10 percent in January with 315,716 U.S. properties affected, but filings remain 15 percent above the level from one year ago, according to the latest update from RealtyTrac, the online foreclosure tracking firm.

More than 300,000 properties received foreclosure filings for the 11th straight month.

Overall, one in every 409 U.S. households received a notice in January. These filings measured by RealtyTrac include default notices, scheduled auctions and bank repossessions.

Last month, RealtyTrac reported that foreclosure filings were up 14 percent in December, compared to November.

Patterns from a year ago suggest a surge in foreclosure actions will follow over the next few months, said James J. Saccacio, chief executive officer of RealtyTrac.

“January foreclosure numbers are exhibiting a pattern very similar to a year ago: a double-digit percentage jump in December foreclosure activity followed by a 10 percent drop in January,” Saccacio said. “If history repeats itself, we will see a surge in the numbers over the next few months…”

He said the expected surge will result from lenders foreclosing on delinquent loans “where neither the existing loan modification programs, or the new short sale and deed-in-lieu of foreclosure alternatives” will be able to rescue distressed borrowers.

Nevada’s foreclosure rate remained the highest for the 37th straight month. One in every 95 Nevada homes received a foreclosure filing — more than four times the national average.

Foreclosure notices decreased by double-digit percentages for California and Florida, compared to December. The two states registered the same rates — one in every 187 housing units receiving a foreclosure filing.

California, Florida and Arizona together account for more than 44 percent of the national total.

RealtyTrac’s report is based on data from more than 2,200 counties nationwide. Those counties account for more than 90 percent of the U.S. population.

See the full report.