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Real Estate: US Foreclosure Filings Fell 28% in January

The number of US properties with foreclosure filings fell 28% in January from a year earlier, while foreclosure starts fell to a 6 yr low, according to market researcher RealtyTrac.

There were 150,864 US properties with default notices, scheduled auctions and bank repossessions in January, a 7% decrease from December, RealtyTrac reported. One in every 869 US housing units had a foreclosure filing last month.

RealtyTrac Vice President Daren Blomquist said the US foreclosure landscape last month was altered by the effects of new legislation in California that took effect at the start of the year. The new law extends many of the principles in the national mortgage settlement, including a prohibition on so-called dual tracking and requiring a single point of contact for borrowers facing foreclosure, to all mortgage servicers operating in California, Mr. Blomquist noted. The law also imposes fines of up to $7,500 per loan for filing of multiple unverified foreclosure documents.

“As a result, the downward foreclosure trend in California accelerated into hyper speed in January, decisively shifting the balance of power when it comes to the nation’s foreclosure activity,” Mr. Blomquist said.

Properties starting the foreclosure process fell 28% on an annual basis to the lowest level since June 2006. The decrease was largely due to a sharp drop in California notices of default, which slipped 75% in January from a year earlier to the lowest level since October 2005. US bank repossessions deslined 24% last month.

Florida posted the highest foreclosure rate among all states for the 5th month runing, and also had the highest number of properties with foreclosure filings for the month. One in every 300 Florida housing units had a foreclosure filing in January, that is more than twice the national average. Nevada and Illinois had the 2nd and 3rd highest foreclosure rates, respectively.