New figures released have shown that the number of properties which were subjected to filing for foreclosure had dropped by 10% during the month of July when compared to the figures from the same period 12 months ago.
The data, which was compiled by RealtyTrac Inc, showed that during July there were default, auction and repossession notices sent to 191,925 homes; this represents 1 in 686 households across the country. It is further evidence that the property market is putting in a sustained recovery, as it represents a 22nd straight decline on a year-on-year basis.
It has recently become harder for lenders to seize properties from borrowers who default on their payments; judicial decisions and new laws that have been enacted now allow homeowners a number of different options in order to avoid foreclosures. For example, one law which was enacted in Oregon in July now allows homeowners the right to request mediation if they are at risk of foreclosure.
Daren Blomquist, RealtyTrac vice-president, said that this law has resulted in foreclosure filings across Oregon "hitting a five year low, but we would expect the Oregon numbers to trend back higher sometime in the next several months based on the pattern we've seen in other states with similar legislation."
Lenders have also played their part when it comes to the reduced number of foreclosure filings by allowing more short sales to go ahead, which allows a property to be sold for a lower amount than is outstanding on the loan and helps to avert home seizures while at the same time acting to minimize losses.
