Foreclosure.com: Foreclosure Inventory Fell

The inventory of foreclosed residential properties declined in June for the first time this year, according to Foreclosure.com, an online foreclosure listing service based in Boca Raton, Fla.There were 22,132 new foreclosed residential properties listed in the United States in June, and such properties totaled 72,962 overall, the company reported. In May, the overall figure stood at 82,991, according to Foreclosure.com. "A number of factors contribute to the short-term drop in foreclosure activity," said Greg Sullivan, vice president and co-founder of Foreclosure.com. "Pricing remains stable due to a vibrant market, low interest rates, and limited housing inventory, and the economy has now begun to recover rapidly. This means that sellers in financial difficulty are able to 'sell out' of their ownership position and avoid foreclosure." Mr. Sullivan added, however, that rising rates will eventually affect demand and borrowers with adjustable-rate mortgages will be unable to liquidate, causing a rise in foreclosures nationwide. The company can be found online at http://www.foreclosure.com.