Foreclosures Plummet In January, But Another Surge Could Be Right Around The Corner

The latest foreclosure data from RealtyTrac is a mixed bag.

The latest month looks good, but we could see a spike again:

RealtyTrac®,  the leading online marketplace for foreclosure properties, today released its January  2010 U.S. Foreclosure Market Report™, which shows foreclosure filings — default  notices, scheduled auctions and bank  repossessions — were reported on 315,716 U.S. properties during the month,  a decrease of nearly 10 per cent from the previous month but still 15 per cent  above the level reported in January 2009. The report also shows one in every  409 U.S.  housing units received a foreclosure filing in January.

REO activity nationwide was down 5 per cent from the previous month but still up 31 per cent from January 2009; default notices were down 12 per cent  from the previous month but still up 4 per cent from January 2009; and scheduled foreclosure  auctions were down 11 per cent from the previous month but still up 15  per cent from January 2009.

“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 per cent drop in January,” said James J. Saccacio, chief  executive officer of RealtyTrac  “If  history repeats itself we will see a surge in the numbers over the next few  months as lenders foreclose on delinquent loans where neither the existing loan  modification programs or the new short sale and deed-in-lieu of foreclosure  alternatives works.”

Nevada, Arizona, California, Florida post top state foreclosure rates
Despite a year-over-year decrease in  foreclosure activity of nearly 18 per cent, Nevada‘s  foreclosure rate remained highest among the states for the 37th  straight month. One in every 95 Nevada  housing units received a foreclosure filing during the month — more than four times the national average.

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