RealtyTrac reported the number of foreclosure notifications issued in the month of May was the lowest it’s been seen since 2006.
Banks are still sorting through the foreclosures they have on file and reviewing files already closed after closer investigation by the government last fall. Because of the already enormous existing inventory financial institutions are less than eager to take on more by continuing to foreclose on homeowners behind in their payments.
It is estimated that 800,000 homes, rather than the originally estimated 1 million, will be absorbed back into the books of lending institutions by the end of this year.
Rick Sharga, RealtyTrac senior vice president, said "The problem with that, even though it sounds better, is that all of those foreclosure auctions we should have seen this year roll into next year, and that means it's going to take that much longer for the housing market to recover."
Ten states continue to press forward in foreclosures. Arizona, California, Michigan, Utah, Georgia, Idaho, Florida, Illinois and Colorado made up the states with the highest foreclosure rates for the month of May.