fter the surprising discovery of the fact that several documents have been prepared in an improper manner, the rate of foreclosure has fallen down in the U.S.

According to the report released by RealtyTrac, there was a 26 percent decrease in foreclosure filings in the U.S. in December 2010 compared to the same month last year. The drop that took place in December was the largest in the last 5 years. RealtyTrac said that December registered the lowest in terms of monthly foreclosure filings ever since the month of June in the year 2008.

In September, report came out saying that legal process was not followed by some servicers in an enormous number of foreclosures. This made mortgage servicers and lenders delay the foreclosure processes in the month of October. Though mortgage service providers say that they are restarting the stalled foreclosures, RealtyTrac found out that around 250,000 foreclosures have been probably deferred because of the controversy. CEO of RealtyTrac, James Saccacio concluded by saying that those foreclosures will probably be resumed in the first quarter of the year 2011.

Investigations are being carried out by the state attorney general and the Department of Justice. Beacon Economics’ Christopher Thornberg says, \”Lenders have been spanked. They\’re spending money to make sure every \’i\’ is dotted and every’t’ is crossed.\” According to him, the rate of foreclosure \”will pick back up.\”

However, it can’t be said whether the pace will be as much intense as the last time or not. Speed bumps have been implemented in New York lawyers of those firms who brought about foreclosures are required to sign, thereby confirming that they went through the court documents, and servicers are asked to check their genuineness.

Ever since this requirement has been implemented from October, filings of foreclosure have “dropped like a rock\” according to Paul Lewis, who is head of the New York State Deputy Chief Administrative Judge Ann Pfau’s team. Lewis reported that the foreclosure filings have dropped from 900 per month to 150 per month.

He supposes that time is required by the lawyers in order to get more information from banks.

Head of asset disposition for Foreclosure.com, Patrick Butler has given various reasons for the delay in foreclosures other than the security measure that has been taken to ensure that paperwork is accurate. The companies don’t want the market to be full of houses because that would lower the prices. Foreclosures may also be averted because of the cost that would be incurred in the maintenance of the properties.

Read More: http://www.foreclosurewarehouse.com/content/foreclosures/foreclosures-drop-december-us/