Foreclosure activity reaches lowest level since 2007

A recent report from RealtTrac showed that foreclosure activity reached its lowest level in the first quarter of 2012 than since the housing market crashed five years ago. While this may sound like promising news industry experts warn that there are many foreclosures waiting to go through the process.

“The low foreclosure numbers in the first quarter are not an indication that the massive reservoir of distressed properties built up over the past few years has somehow miraculously evaporated,” said Brandon Moore, chief executive officer of RealtyTrac.

Moore said the as the banks begin to process their backlog the market will be flooded with homes and further distressed until banks are able to sell these properties off.  The impending foreclosures will continue to drive down home values. Some of these foreclosures can be averted if the homeowner retains a foreclosure attorney to challenge the lender or negotiate for a mortgage modification.

The slowdown is once again attributed to banks changing the way they process default notices after being sharply criticized and fined millions of dollars for the way they mishandled foreclosure documents. In some states like Florida and California it can take years for a foreclosure to move through the courts even with a foreclosure lawyer.

Foreclosure is a daunting thing to face for the homeowner, who may not realize they have options available to them to prevent eviction. A foreclosure attorney will be able to give the troubled homeowner sound advice and outline the moves they can take to stay in their homes.