10 % Decline In Foreclosures For November

There has been a minor drop in the number of foreclosures for the month of November, but this has left many experts wondering whether this is just a pause in the current trend, or a reversal being seen in the real estate industry. Foreclosures take place when delinquent home owners are unable to meet their monthly mortgage payments, and default, thereby causing their house to be put up for auction by the lender to recover their loan amount along with all charges and penalties.

Although much of the U.S is currently reeling under the pressure of housing slowdown, with no signs of improvement, a remarkable drop of 10 per cent was witnessed in the foreclosure scenario for the month of November 2007.

In, all 201,950 property foreclosure filings were registered in November, including the banks’ reclamations attempts, auction sales and default notices. The figure is a good 10 per cent down from last month’s and from April 2006 onwards, the first double figure percentage decline.

The undesired crown of topping the foreclosure list remains with Nevada for the 11^th consecutive month. As opposed to the national average, Nevada’s foreclosure rate is four times higher at one for every 152 properties. While Ohio is third, Florida with one in every 282 households filing for foreclosure stood second.

In terms of cities, Stockton in California registered the highest foreclosure- an alarming one in every 104 properties. This was despite a considerable 21 per cent decline (from October) for the entire state.

However, Chief Executive Officer James Saccacio of RealtyTrac (Irvine, California) is unsure towards the continuity of this positive trend. He states that the true picture will emerge only in the beginning of 2008 when an increased surge in foreclosure filing and an aggressive stand by the lenders on the mortgaged properties will be witnessed.

Director of REO (real estate owned properties) Glen Daniels, on behalf of Foreclosure.com, reiterates that in all likelihood the foreclosure crises in the country will continue to persist. He suggests that festive and holiday season could be a possible cause of this decline in foreclosures. Most people take vacations, including the attorneys who would otherwise be representing the lenders. Also, major adjustments in the mortgages of variable interest rates secured during economic progression will be seen in the coming year.

Unfortunately, the scenario is likely be very depressing and bleak early next year, he says.

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