Foreclosures.com: Is the end near? April foreclosures and pre-foreclosures drop

SACRAMENTO, Calif. – May 12, 2008 – The nation’s foreclosure hemorrhage slowed a bit last month, according to Foreclosures.com. Lenders repossessed 74,570 homes following foreclosure in April, down more than 5 percent from March. April pre-foreclosures dropped 7.52 percent from March too, according to California-based Foreclosures.com foreclosure information specialists.

“The sky isn’t falling, and the bottom of the housing market is in sight,” says Alexis McGee, president of Foreclosures.com.

Foreclosures.com says its analysis is based on the number of formal notices filed against a property during the foreclosure process. That can include notice of default, notice of foreclosure auction, and trustee’s deeds/REOs (real estate owned by lender through foreclosure).

In the 1st quarter of the year, 2.8 of every 1,000 households ended up back in lenders’ hands, up from 2.7 in 4th quarter 2007 (213,927 1st quarter filings vs. 197,736 in 4th quarter 2007). Quarter over quarter, 17 states actually had fewer REO filings in April.

“That’s the good news. The bad news is that still 3.8 of every 1,000 households nationwide (288,497 REO filings) have been lost to foreclosure so far this year,” says McGee. “Another 696,925 pre-foreclosure filings – 9.4 of every 1,000 households – have been recorded year-to-date with 179,046 filings in April.

“The numbers tell us the economy isn’t dead,” adds McGee. “U.S. gross domestic product was not negative as many had speculated and grew 0.6 percent in the first quarter. Combine that with positive moves by government and industry – including the still-evolving FHA reform and tax credits, along with federal tax rebates – are making a difference. The S&P 500, after dropping nearly 19 percent Oct. 9 to March 9, has since rebounded 11 percent. New jobless claims were lower than expected, and even Treasury Secretary Henry Paulson is upbeat, predicting a pick-up in growth later this year.”

States with the most REO filings by household year-to-date (YTD) include:
• Mississippi (17.2 for every 1,000 households; 885 filings)
• Arizona (12.6 per 1,000; 23,841 filings)
• Nevada (11.3 per 1,000; 8,233 filings)
• Colorado (7.5 per 1,000; 11,721 filings)
• Michigan (6.7 per 1,000; 20,069 filings)

States with the highest number of REO filings YTD
• California, 70,863 filings (6.2 per 1,000 households)
• Florida, 24,764 (4 per 1,000)
• Arizona, 23,841 (12.6 per 1,000)
• Texas, 22,521 (3.8 per 1,000)
• Michigan, 20,069 (6.7 per 1,000).

States with the most pre-foreclosure filings by household YTD

• Nevada, 31.5 per 1,000 households (23,264 filings)
• Arizona, 28.7 per 1,000 (54,059 filings)
• Florida, 25.6 per 1,000 (162,316 filings, leading the nation in total number of filings)
• California, 13.9 per 1,000 (160,044 filings)
• New Jersey, 9.6 per 1,000 (28,825 filings).

Source: Foreclosures.com

© 2008 FLORIDA ASSOCIATION OF REALTORS®

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