RealtyTrac Statistics for February show that foreclosure filings increased at a 6% year-over-year rate, the slowest in four years, and actually declined from January’s numbers. It appears that the big push for loan modifications, short sales and other foreclosure-prevention programs may be limiting monthly foreclosure activity.
This has happened during a time when we have continued to hear about the tremendous amount of potential loan defaults in play throughout the country, as we also see that default notices were up 3% from the prior month but down 3% from a year earlier. While California homeowners have been one of the hardest hit in terms of number of defaults, Nevada residents continue to top the list for the 38th month in a row: 1 in every 102 Nevada homes received a filing, more than four times the national rate. The bottom line is that, while filings were down in February, we will likely continue to see higher than normal foreclosure activity in the coming months.