The Pace Of Foreclosures Slows

The number of new foreclosures was down almost 14% in February when comparted to January, as reported by RealtyTrac, an online marketplace of foreclosure properties. Unfortunately the reasons behind the slowdown don't paint as rosy a picture as one might expect.

Rather than because fewer homeowners are missing mortgage payments, the drop in new foreclosures is more likely the result of banks reluctance to begin the proceedings due to regulatory pressures as reported in the New York Times (http://www.nytimes.com/2011/01/09/business/09foreclosure.html) or because the surplus of homes for sale means they will make up less of their money selling a home now.

Whatever the reason, there are positives to the reduction in foreclosures. For individual homeowners it may mean a better chance at a loan modification which could allow them to remain in the home, and for the larger economy fewer homes for sale may give the housing market a better chance at a faster recovery.