Foreclosures Drop for 7th Consecutive Month

The number of foreclosure filings dropped for the seventh straight month in April, according to a report released on Thursday by RealtyTrac. The company found that while filings fell a whopping 34 percent from a year prior, the housing market is not any closer to getting on the right track.

Banks Not Finished Filing or Repossessing

The news that foreclosure filings had dropped considerably in April from a year prior, along with the fact that only 69,532 homes were repossessed in the month (representing a 32 percent drop from the peak seen last September) could lead some to believe that the market is recovering.

But experts insist that the robo-signing scandal of last year forced many banks to stop their filing process only temporarily. The proof is in the numbers. In April, 3.7 million borrowers were at least 90 days late on payments and in danger of having filings issued.

The one good side is that the economy has picked up some, meaning some homeowners may be able to resume payments on their mortgages. Also, banks are trying harder to keep borrowers in their homes through modification assistance.

The hope is that the late payments won’t turn into defaults, adding more repossessions to an already overly-saturated market that sees plunging home values and more underwater mortgages.

Cities with Highest Foreclosure Rates in April

RealtyTrac also released a list of cities with the highest foreclosure rates for April. The top 10 cities are:

• Nevada: 11,761 filings (1 in 97 homes)
• Arizona: 13,419 filings (1 in 205 homes)
• California: 55,869 filings (1 in 240 homes)
• Utah: 2,961 filings (1 in 322 homes)
• Idaho: 1,994 filings (1 in 325 homes)
• Michigan: 12,996 filings (1 in 349 homes)
• Florida: 19,649 filings (1 in 451 homes)
• Georgia: 8,479 filings (1 in 479 homes)
• Colorado: 4,379 filings (1 in 495 homes)
• Oregon: 3,296 filings (1 in 497 homes)

There’s no doubt that the drop in foreclosure filings and repossessions looks great in the moment, but with threat still imminent throughout the country and banks having a hard time selling homes that have already been repossessed, it’s likely that the housing market could struggle to recover for years.