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US housing foreclosures decline in January
By Julie Havi |
February 12, 2010, Friday
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Print Edition
Print Edition
UNITED States mortgage foreclosures dropped in January but the decline may prove only temporary as housing-rescue efforts fall short of addressing current issues, the latest report by property data firm RealtyTrac showed yesterday.
Foreclosures are one of the biggest threats to the US housing market, which remains highly vulnerable to setbacks and heavily reliant on government intervention. If foreclosures continue dropping, it would be a strong signal the market is on the path to recovery.
Foreclosure filings, including mortgage default notices, house auctions and home repossessions by banks, were reported on 315,716 properties in January, a decrease of nearly 10 percent from December, but up 15 percent from January 2009 figures, RealtyTrac said.
One in every 409 US houses received a foreclosure filing in January, California-based RealtyTrac said in its January 2010 US Foreclosure Market Report.
Furthermore, the number of foreclosures remained above 300,000 properties for the 11th straight month, the report found.
While January's decrease may indicate foreclosure prevention efforts are gaining traction, the data has been volatile in recent months and they may rise again.
"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 percent 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," he said.
High unemployment and wage cuts have hurt the ability of many home owners to pay monthly mortgage payments. Unemployment was 9.7 percent in January, according to the Labor Department.
Foreclosures are one of the biggest threats to the US housing market, which remains highly vulnerable to setbacks and heavily reliant on government intervention. If foreclosures continue dropping, it would be a strong signal the market is on the path to recovery.
Foreclosure filings, including mortgage default notices, house auctions and home repossessions by banks, were reported on 315,716 properties in January, a decrease of nearly 10 percent from December, but up 15 percent from January 2009 figures, RealtyTrac said.
One in every 409 US houses received a foreclosure filing in January, California-based RealtyTrac said in its January 2010 US Foreclosure Market Report.
Furthermore, the number of foreclosures remained above 300,000 properties for the 11th straight month, the report found.
While January's decrease may indicate foreclosure prevention efforts are gaining traction, the data has been volatile in recent months and they may rise again.
"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 percent 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," he said.
High unemployment and wage cuts have hurt the ability of many home owners to pay monthly mortgage payments. Unemployment was 9.7 percent in January, according to the Labor Department.
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