Dramatic Reduction in Foreclosures

Foreclosures across the U.S. plummeted by more than 25% in January, with many of the hardest-hit states seeing dramatic drops in the number of homes repossessed by lenders, according to the latest U.S. Foreclosure Index released by the Sacramento-based ForeclosureS.com. Nationally, the number of completed foreclosures dropped from 97,841 in December to 72,694 in January 2009. Pre-foreclosure filings also dropped 12% from 190,467 in December to 166,860 in January. Foreclosures in California dropped more than 31% in January to 14,351, less than half the 31,851 properties foreclosed in the peak month of September 2008. In Florida, there were 10,007 foreclosures completed in January, down from 12,786 in December. Nevada fell from 4,039 in December to 3,207 in January. Arizona, Texas, Georgia, and Ohio also experienced declines in completed filings. Among states with the most pre-foreclosure filings, only Texas and Michigan saw increases. "Efforts last year by government and industry to lay the groundwork for housing recovery finally are yielding the hoped-for slowdown in the foreclosure hemorrhage," said Alexis McGee, president of ForeclosureS.com. With the amount of both state and federal government foreclosure intervention programs and mortgage lenders who are finally starting to be more accommodating on their loan modifications to avoid foreclosure, Ms. McGee expects the growth of 2009 foreclosures to be much less than many experts are predicting.