Foreclosures Fell in First Half 2011

U.S. foreclosure filings fall in first half 2011, but likely to rise again

The number of foreclosure actions in the U.S. fell 29 percent in the first half of 2011 from the year-earlier period, according to RealtyTrac. Approximately 1.2 million properties received foreclosure filings, which include default notices, auction sale notices and bank repossessions.

Foreclosure filings in June also fell 29 percent from a year earlier. However, there was a 4 percent increase in foreclosure filings compared with May.

Foreclosure filings likely to rise again

"It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market," said James J. Saccacio, chief executive officer of RealtyTrac, in a statement. "Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn't appear to be the case."

Saccacio added that processing and procedural issues are delaying many foreclosures. "We estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later. This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number."

Avoiding a foreclosure filing

If you can, get help with your mortgage before it escalates to a foreclosure filing. You've likely used an amortization calculator to see how much principal and interest you're currently paying to determine how you might make monthly mortgage payments more affordable.

If you still have equity in a home, it's also a good idea to use a refinancing calculator to see how much money might be saved by getting a loan with a lower interest rate. Check out this option even if you don't think you'll qualify to refinance because you won't know for sure until you apply for a loan. A closing costs calculator can help you compare the fees involved with refinancing to determine the how much getting a new loan would actually cost and find out when you would break even on those fees.