February Foreclosure Filings Fall Far

Illinois saw a huge drop in the number of homes that received a foreclosure filing last month. We’re going to call that a sign of recovery, even if the critics don’t.
The foreclosure rate in Illinois fell a whopping 44.6 percent to 9,592 in February 2011 compared February 2010. That is a 27.1 percent drop over January 2011 numbers.
One out of every 552 Illinois homes received a foreclosure-related filing last month. That puts us at No. 11 in the country and drops us out of the top 10 states with the highest rates.
Sign that says pre-foreclosure outside a house.In 2010, Illinois was No. 9, so we are seeing an improvement this year already.
The information comes from RealtyTrac‘s February 2011 U.S. Foreclosure Market Report.
The data shows that nationwide, 225,101 properties received a foreclosure filing in February, a 14 percent drop from January and a 27 percent plunge from the same month last year.
That’s the biggest year-over-year decrease since the online foreclosure site started tracking this information in 2005.
So how could we not see this as a housing recovery?
“Foreclosure activity dropped to a 36-month low in February as allegations of improper foreclosure processing continued to dog the mortgage servicing industry and disrupt court dockets,” said James J. Saccacio, chief executive officer of RealtyTrac. “While a small part of February’s decrease can be attributed to it being a short month and bad weather, the bottom line is that the industry is in the midst of a major overhaul that has severely restricted its capacity to process foreclosures.
“We expect to see the numbers bounce back, but that will likely take several months. And monthly volume may never return to its peak in March 2010 of more than 367,000 properties receiving foreclosure filings.”
Well, let’s hope not.
Nevada ranked No. 1 in the country for the 50th straight month in February with one in every 119 homes receiving a foreclosure filing in February.
Vermont is sitting pretty at No. 50 with a mere one in every 62,849 homes nearing foreclosure.
Illinois sits closer to the national average, which is one in every 577 U.S. homes with a foreclosure filing during the month of February.