Foreclosures Down 10%

Foreclosures dropped in January, a possible sign that efforts to slow foreclosures through moratoriums and mortgage modifications are having some effect. But the moratoriums raise concerns that foreclosures are only being delayed, not prevented.

In addition to the recent drop in foreclosures, there have been other promising signs in the bruising housing market.

Existing home sales showed an unexpected uptick in December. Sales rose 6.5% in December to an annual rate of 4.74 million properties from 4.45 million in November, according to a report by the National Association of Realtors. Economists had been predicting a drop of around 4%.

“We are beginning to see some bargain hunters coming into the market looking,” says Lawrence Yun, chief economist at the National Association of Realtors.

“A 10% decline (in foreclosures) is positive, but it’s after very high levels. We still have a crisis. (The moratoriums) could just be postponing.”

What do you think? Are we seeing a “postponement” of foreclosures, or do you think we are finally seeing a turn-around? Click the comment link below and give us your opinion. We’d love to hear from you.