Foreclosures Decline 62% (for now)

As I previously reported, the decline in foreclosure files has led to a decrease in court filing fees which provide a dedicated source of funds for the courts.

The large decrease in foreclosure filings was reported in the April 14 Sun-Sentinel. Relying upon figures from RealtyTrac, Florida foreclosures fell by 62% from the prior year.

The large reduction in foreclosure filings does not imply that the corner has turned on the foreclosure crisis. Lenders have been forced to finally deal with the robo-signers and fraud issues that have become so widespread. Foreclosure mills have been fired, replaced, or as for David Stern, closed. Hundreds of thousands of files have to be transferred, and new attorneys have to be hired. Also, there has been litigation with state attorney generals across the country. A new consent decree between loan servicers and bank regulators also will have an impact on the processing of foreclosures.

There is still no end in sight to the foreclosure mess.



Leave a Reply

Your email address will not be published. Required fields are marked *