Foreclosures Plummet to Pre-Crash Levels
Foreclosures fall to 6-year low, 32% drop from last November
By Newser Editors and Wire Services
Posted Dec 12, 2013 10:01 AM CST
In this Sept. 26, 2007 file photo, a realty sign stands in front of one of the many homes that are in foreclosure in the Villages of Queen Creek in Queen Creek, Ariz.   (AP Photo/Ross D. Franklin, file)

(Newser) – The number of US homes entering the path to foreclosure or winding up repossessed by lenders has fallen to levels not seen in more than six years. While foreclosures remain a concern in select states, the trend is the latest sign that foreclosures are becoming less of a national factor in the housing recovery. Lenders initiated foreclosure action against 52,826 US houses in November, down 10% from the previous month and a drop of 32% from November last year, according RealtyTrac's latest numbers.

The last time the tally of monthly foreclosure starts was lower was in December 2005. The number of homes repossessed by banks increased in only five states: Delaware, Maryland, Connecticut, Maine, and Iowa—all states where the courts must sign off on foreclosures, a factor that typically draws out the process longer than in other states. But some of the decline was due to seasonal slowdown as the end of the year draws near, which could mean a bump early next year, one RealtyTrac executive warned.

Copyright 2016 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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Showing 3 of 14 comments
uthink
Dec 16, 2013 8:30 AM CST
So that's why my palace is only worth $65k now.
Roddy Pfeiffer
Dec 12, 2013 7:42 PM CST
This is the article the banks want to see. They stopped foreclosing because it resulted in an empty house that got vandalized and the bank was also liable for the property taxes. They leave the owners in and put it up for a short sale. They have a built-in security guard until the sale. The whole deal never shows up as a foreclosure. Look at Realtor.com and see the "short sale" notation on thousands of houses. Of the homes that do sell, 50% are all cash to hedge funds who want them for rentals. Some high end homes go to wealthy foreigners who are diversifying their portfolios, just like the Japanese in the late 1980's. It didn't work out for them, either. Things are not getting better. When the "taper" comes and interest rates skyrocket, it will get worse. Don't be a sucker and buy a house now.
barnums-animals
Dec 12, 2013 3:29 PM CST
Don't fret house flippers. The foreclosures will soon be in full swing again with the complete implementation of obama care.