As of last January, foreclosures all over the United States have dropped by over 25 percent with majority of the severely hit states witnessing declines in the quantity of homes reclaimed by lenders. On the national level, completed foreclosures have plummeted from 97,841 last December 2008 to 72,694 this January 2009, the lowest number of completed foreclosures ever since April 2008.
Moreover, pre-foreclosure filings which gauge the future of completed foreclosures dropped as well by 12 percent from 190,467 last December into 166,860 this January. These findings are according to the data collected by Foreclosures.com, a housing information company in Fair Oaks.
In California, foreclosures continue to drop as buyers step into the housing market. Completed foreclosures have dropped by more than 31 percent last month to 14,351, which is the lowest point since December last year, and less than half of the 31,851 foreclosed homes in the peak month of September 2008.
Completed foreclosures declined by nearly 22 percent in Florida as only 10,007 homes in January had completed foreclosures, compared to 12,786 homes of December last year. In addition, Nevada experienced a decline by 20 percent in completed foreclosures, which went from 4,039 last December 2008 to 3,207 this January 2009. Other states like Arizona, Georgia, Ohio and Texas have also experienced drops in completed foreclosures filings. Only Texas and Michigan underwent an increase in pre-foreclosure filings.
According to the president of Foreclosures.com, Alex McGee, the slowing down of the foreclosure crisis can be attributed to the efforts made by the government and federal industry last year to lay the foundation for housing recovery. Even though unemployment is still a big concern to the economy, there are still many buyers in the housing markets. Home sales are thriving because of the dramatic drop in mortgage interest rates and home prices, making homes more inexpensive and manageable than in the last 30 years.
Neophyte homebuyers and investors are coming off the sidelines and are now purchasing homes. Even though the spotlight is still on foreclosures in most headlines, the story is currently the revival of the real estate.
McGee anticipates the rise of foreclosures in 2009 will be much less compared to what the experts are predicting, thanks to the many foreclosure intervention programs by the state and federal government, and the now more accommodating lenders in their loan modifications to prevent foreclosure.
There are also other factors laying the foundation for the comeback of the housing industry, states the president of the real estate information company. An increase in population and all-time lows of new construction put the country on the course for a shortage in housing.
Author Resource:-
John Cutts has been educated in the finer points of the foreclosures market over 5 years. Read foreclosure news at EForeclosureMagazine.com.
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