Home Foreclosure Filings Down 17%
February 11, 2011
SAN DIEGO (ETFguide.com) – Home foreclosure filings in the U.S. dropped 17 percent in January compared to a year earlier. It was the fourth consecutive month of declines, according to RealtyTrac. So does this mean the housing market on the rebound?
“Unfortunately, this is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing,” said James J. Saccacio, the chief executive officer at RealtyTrac.
Put another way, home foreclosure filings are not declining because of fundamental improvement in the housing market but rather because of a temporary blip.
Over the past year, banks (NYSEArca: KBE) have been criticized for the way they and loan servicers processed home foreclosures. It’s alleged they used faulty paperwork and “robo-signing” techniques to quickly complete the foreclosure process. As a result, people were kicked out of their homes inappropriately and maybe even illegally.
Attorneys General in all 50 states began investigating the claims made against bank lenders last fall.