Foreclosures Significantly Down to 2008’s Lowest Levels

by Peter Vernon on Foreclosures, Repo Homes

The significant drop in numbers for pre-foreclosure filings and foreclosed homes last October is a good indicator that the real estate industry is slowly getting back on its feet. Levels dropped to its lowest since February. Credit this to the efforts posted by banks, lenders, non-profit organizations and government agencies who worked restlessly these previous months to help beleaguered homeowners avoid foreclosures.

Pre-foreclosure filings last October were 10% down from August levels and 7% down from September. These include notice of default and foreclosure auctions. With only 84,286 repossessed properties during this month, the level dropped dramatically by 22% since September. This trend is the same throughout half of American states according to the U.S Foreclosure index.

Although the current financial crisis have rolled across most of the U.S., pre-foreclosure filings and repossessed houses where mostly concentrated in certain states, cities and counties. These areas include Detroit which was hard-hit by recession and unemployment. The case is different with other states like California, Florida and Nevada which where victims of property speculation in prices and affordability.

The new President-elect has placed the current economic crisis at the top of his agenda when he takes charge in January. Included in this program is this lingering real estate crisis where Obama promised a 90-day moratorium on foreclosures. However, experts say that it will still be up to individual states to impose their own regulations.

While direct intervention by the government regarding foreclosures is still debatable, major banks and financial institutions have starting working out mortgage restructuring and putting monthly payments down to affordable levels. This means cutting down interest rates, extending loan terms, and reducing balances.

Although the last two months have shown good figures and great signs of recovery for the housing industry, work in this area still has a long way to go. Experts say that these figures may not yet be considered conclusive, although it shows sign that the nation is heading in the right direction.