Foreclosures Drop in December, Remain up for 2010
While foreclosures in December were the lowest in several years, more than 1 million homes were repossessed in 2010 – the most since 2005, according to a Jan. 13 RealtyTrac news release

While December foreclosures were the lowest since June 2008, filings that were halted in the fourth quarter are likely to proceedin 2011, leading RealtyTrac to predict that 2011 will be the worst year for foreclosure filings since the housing crisis began in 2006.

RealtyTracreported one in 45 houses received foreclosure filings in 2010, up 1.67 percent from the previous year. There were 3,825,637 foreclosure filings, including default notices, scheduled auctions and repossessions on U.S. properties last year. Of those filings, RealtyTrac reported that 257,747 were filed in December. That is a decrease of almost two percent from November and 26 percent from December 2009. RealtyTrac reported that 799,064 homeowners received foreclosure filings in the fourth quarter,

Many major lenders temporarily halted foreclosure proceedings in the fourth quarter “triggered primarily by the continuing controversy surrounding foreclosure documentation and proceedings,” James. J. Saccacio, chief executive officer of RealtyTrac, said in the release.

After allegations that evictions were being handled improperly, banks stepped back on filings to review their processes and temporarily halted taking action against borrowers behind in payments. To date, RealtyTrac reported that about 5 million borrowers are at least two months behind on mortgage payments.

Saccacio estimated as many as a quarter million filings may have been stopped in late 2010, and will likely be re-started in 2011. Altogether, RealtyTrac predicts as many as 1.2 million homes will be repossessed this year.

Factors that will promote the continued rise in foreclosure filings include high unemployment, strict credit standards for those wishing to refinance, and a decrease in home values. Rick Sharga, senior vice president at RealtyTrac, told The Associated Press thathe expects home values to fall another 5percent this year before hitting bottom. That will push borrowers even further underwater on their mortgages. One in five homeowners already owes more on their homes than they are worth.