Popular Real Estate Blogs: [Don't Just Blame the Robo-Signers] RealtyTrac: Foreclosures Fall to 44 Month Low

[click on image for interactive chart]

RealtyTrac released their July 2011 U.S. Foreclosure Market Report today. My friend and RealtyTrac executive Rick Sharga gives a quick overview in the report video. One of the quirks in the housing market today is the 10-month decline in foreclosure activity. The drop is a negative rather than a positive in the housing market.

“July foreclosure activity dropped 35 percent from a year ago, marking the 10th straight month of year-over-year decreases in foreclosure activity and the lowest monthly total since November 2007,” said James J. Saccacio, chief executive officer of RealtyTrac. “This string of decreases was initially triggered by the robo-signing controversy back in October 2010, which forced lenders to substantially slow the pace of foreclosing, but the downward trend in foreclosure activity has now taken on a life of its own. It appears that the foreclosure processing delays, combined with the smorgasbord of national and state-level foreclosure prevention efforts — including loan modifications, lender-borrower mediations and mortgage payment assistance for the unemployed — may be allowing more distressed homeowners to stave off foreclosure.

Metrics we couldn’t have imagined 5 years ago:

Nevada number one foreclosure state for 55th consecutive month.Nevada, California and Arizona remain top 3 states with reo activity.10 States account for 70% of total foreclosure activity.

“Unfortunately, the falloff in foreclosures is not based on a robust recovery in the housing market but on short-term interventions and delays that will extend the current housing market woes into 2012 and beyond,” Saccacio continued. “A stabilizing economy and improving job market are the long-term keys to a housing market recovery.”

With GDP sliding, unemployment stuck in the 9’s and the financial markets in turmoil, betting money says that foreclosure activity will expand significantly from current artificial lows.

Source: RealtyTrac [click chart to expand]