The foreclosure log jam is loosening in some parts of the nation, depending on the foreclosure process in each state. Judicial states are seeing longer foreclosure processing times while non-judicial states are shrinking delays.
The number of Americans that received a delinquency notice in February rose from January by 1.0 percent, down 7.0 percent over the year, according to a new Realty Trac report. The backlog of homes in foreclosure that has plagued data reporting looks to be easing after months of processing issues.
Fully 58,886 homeowners received default notices for the first time in February. Increases in first time foreclosure filings of 20 percent or more hit 12 states including Massachusetts and Florida. In total, banks repossessed 4 percent fewer homes in February, and 1.0 percent less than February 2011.
Foreclosure filings at all stages dropped 2.0 percent in February from January and fell 8.0 percent from February 2011. Judicial states and non-judicial states experienced varied paces of foreclosure, which the report suggests means that some of the homes in the pipeline were starting to move.
Foreclosure activity in judicial states rose 24 percent over the year. The report notes that the time it takes to foreclose is substantially longer in these states, contributing to the backlog. Foreclosure activity in non-judicial states dropped 23 percent, revealing a massive gap between the two types of states.
â€œWeâ€™re seeing definite signs that the foreclosure log jam thatâ€™s built up over the last year and a half is beginning to loosen up,â€ Daren Blomquist, director of marketing communications at RealtyTrac said in a statement.
Blomquist added, â€œItâ€™s a little difficult because itâ€™s not all happening at the same time across the country. Regionally and state by state, weâ€™re seeing the numbers loosen up at different times.â€