RealtyTrac is reporting is their latest US Foreclosure Report that foreclosure activity has dropped to the lowest levels in forty months. The report counts foreclosure filings, auctions scheduled and bank repossessions as foreclosure activity in this report. The report for April 2011 showed foreclosure activity was down 34% over April 2010. The slowdown can mainly be attributed to the increase in foreclosure processing delays and not a sign of a housing recovery. Lenders are allowing more time for loan modifications, short sales and other solutions that avoid foreclosure. The Mortgage Banker Association is estimating that 3.7 million loans are currently seriously delinquent (more than 90 days past due).
States like Tennessee with a judicial foreclosure process had an 11% month-over-month decline in April 2011, and had a 26% year-over-year decline in foreclosure activity. States with judicial foreclosure process showed much smaller declines, however, their foreclosure processes were already significantly longer. Tennessee was not included in the top ten states with the most foreclosure activity. The ten states with the most foreclosure activity in April 2011 were California, Florida, Arizona, Michigan, Nevada, Illinois, Texas, Georgia, Ohio, and Colorado.