Notice of Default filingsrn(NOD, LIS) totaled 58,797 in May, a seven percent decrease from April and downrn39 percent from a year earlier.  This wasrnthe lowest number of default notices recorded in a single month since Decemberrn2006.</p

Foreclosuresrnwere scheduled (NTS, NFS) for the first time on 89,251 housing units.  This was an increase of 3 percent over Aprilrnfigures following eight straight months of decreases.  The May 2011 figure was 33 percent lower thanrnthe number of foreclosures scheduled a year earlier. </p

Lendersrnrepossessed 66,879 properties during the month, a 4 percent decrease from Aprilrnand the second straight month the number was down.  Repossessions (REO) were 29 percent lower thanrnone year earlier.  RealtyTrac noted that,rnsince the so-called robo-signing controversy erupted last fall, REO activityrnhas exhibited a rollercoaster pattern with five monthly decreases and threernincreases.</p

“Foreclosure processing delaysrncontinue to mask the true face of the foreclosure situation, although therernwere some clues in the May numbers of what lies behind that mask,” said JamesrnJ. Saccacio, chief executive officer of RealtyTrac. “First, activity spiked inrnMay for various stages of the foreclosure process in some states, a patternrnthat has occurred in several states over the past few months. This patternrnprovides evidence that lenders are somewhat unevenly pushing batches of badrnloans through foreclosure as they overhaul their paperwork and documentationrnprocedures and as they determine that some local markets are able to absorbrnmore foreclosure inventory.  </p

“Second, while the inventory ofrnproperties in the foreclosure process has declined steadily over the past sixrnmonths – thanks in large part to 16 consecutive months of year-over-yearrndeclines in new default notices – the inventory of unsold bank-owned REOsrnincreased in April and May even as new REO activity slowed in both of thosernmonths,” Saccacio continued. “That points to continued weak demand from buyers,rnmaking it tough for lenders to unload their REO inventory. Even at arnsignificantly lower level than a year ago, the new supply of REOs exceeds thernamount being sold each month.”</p

 A total of 141,348 propertiesrnreceived foreclosure filings in states where lenders primarily use thernnon-judicial foreclosure process, nearly two-thirds of the national total.rnOverall foreclosure activity in non-judicial foreclosure states was down 3rnpercent from April and down 25 percent from May 2010.  In non-judicial foreclosure states scheduledrnauctions increased 2 percent but in California this category was up 16 percentrnsince April and in Texas, Virginia, and Michigan the increase was 10 percent.  REO activity in states that used primarilyrnthe judicial foreclosure process was virtually unchanged while there was a veryrnhigh increase in activity in three non-judicial states.  In Georgia REO activity increased 79 percentrnmonth-over-month while in Virginia and Michigan the increases were 36 percentrnand 19 percent respectively.  There werernalso spikes in REO activity in four judicial states with New York posting a 97rnpercent increase, New Jersey 21 percent, Wisconsin 20 percent and Indiana 18rnpercent.</p

Once again Nevada and Arizona ledrnthe nation in foreclosure activity followed by California, Michigan, andrnGeorgia.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.