Foreclosures are the Lowest they have been in Five Years

By Sari R. Updated on 10/11/2012

This past September, foreclosures hit a five year low with only 180,427 filings made.  These filings included bank repossessions, foreclosure auctions and default notices.  The number of foreclosures in September 2012 was down 7% from August 2012 and down 16% from September 2011.  3Q foreclosure numbers also reached the same five year low with 531,576 filings and dropped 13% from 3Q last year.  This is the ninth consecutive quarter that has seen foreclosure declines.

Daren Blomquist, VP at RealtyTrac states that he has been waiting for foreclosures to decrease since 2010 when many questionable foreclosure practices stopped.  The steep decrease in foreclosure activity can be attributed to declines in foreclosure inventory levels in nonjudicial foreclosure states such as Arizona, Michigan, Texas, California and Georgia.

States such as New Jersey, Ohio, New York, Illinois and Florida are still currently dealing with high foreclosure filings as of this September.  Since last year, California’s foreclosure starts fell 45% but this gain could potentially be interrupted by pending legislation rules.  Analysts have projected that California could become a judicial foreclosure state due to the fact that many firms are aware of California’s Homeowner Bill of Rights.

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