Default Notices Down 27%, but REO Sets New Monthly Record

Even with a substantial drop in default notices in April, real estate-owned hit a record monthly high with a total of 92,432 properties repossessed by lenders, up 1% from March and up 45% from April 2009, according to RealtyTrac.

The foreclosure tracking website, based in Irvine, Calif., said a total of 103,762 properties received default notices in April, a decrease of 12% from March and down 27% from a year ago.

“We expect a similar pattern to continue for most of this year with the overall numbers staying at a high level and ripples of activity hitting the various stages of the foreclosure process as lenders systematically work through the backlog of distressed properties,” said CEO James Saccacio.