Foreclosures in California and Florida have dropped significantly from December to January.
Based on reports from Foreclosures.com, California Foreclosures have decreased by 31.5 percent within the last month, while Florida foreclosures have dropped by around 22 percent.
This is a sign of the states’ recovery, since both have been at the top of the list of states that have the highest number of foreclosed homes. This is good news, especially for homeowners who fear that they might experience foreclosures as well.
Alexis McGee, president of Foreclosures.com, attribute this trend to some factors. First, he said that the government’s efforts to rescue ailing properties and mortgages have significantly helped people to keep their homes. The government is set to release $50 billion worth of rescue funds to assist banks and other mortgage lenders in providing moratorium and loan adjustments to homeowners.
Second, mortgage financers Freddie Mac and Fannie Mae’s moratorium on foreclosures before last year’s holiday may have saved some houses from foreclosure. Other major banks and lenders also released loan workouts and adjustments to prevent foreclosures.
Lastly, states have been taking necessary action and have been implementing measures to keep their communities and homes. California, for instance, adopted last November Senate Bill 1137, a bill that requires banks and lenders to make necessary negotiations and arrangements with homeowners facing foreclosures. Some other states continue to enact bills to regulate and pacify foreclosures.
These actions have also affected the country as a whole, as there has been a 25 percent drop in foreclosure cases nationwide. So far, this month’s number of foreclosures is the lowest recorded number of foreclosed properties since April 2008. Among all the states, Only Michigan and Texas experienced continued increase in foreclosures.
Amid this trend, however, McGee says that the country is not to be confident about the situation. This is not necessarily a sign that foreclosures will continue to decrease and that there will now be a reversal of trends. There is a need for the government to execute its plans as soon as it can, so that just like Florida foreclosures and California foreclosures, the numbers will decrease.
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