Foreclosure activity plummeted to a 44-month low in July. While the dip in filings may be an optimistic sign for the troubled housing market, some experts suggest that the statistic is a temporary side effect of stalled foreclosure proceedings, according to MarketWatch.
The number of homes served with foreclosure notices in July was down 39 percent from a year ago to fewer than 60,000, according to a recent RealtyTrac report. The slower pace is helping many lenders unload the backlog of bank owned properties already on the market. However, many homeowners may still be in danger of losing their homes to banks, according to MSNBC.
Some of the delays may be due in part to those homeowners that have been challenging foreclosure notices. "Robo-signing," the practice of processing bulk foreclosures with minimal review, is being widely contested. Other homeowners with an eye for paperwork have spotted inconsistencies in processing files and used them to put a stop to foreclosure procedures, the source reports.
"The process has more or less ground to a halt in a lot of states that do foreclosures through the court system," said Rick Sharga of RealtyTrac, according to the source.