U.S. foreclosure filings fell 2% in April compared with the same month last year and are down 9% compared with March, according to data released today by RealtyTrac.
The Irvine, Calif.-based foreclosure Web site counted 333,837 properties, or one out of every 387, that received a foreclosure filing during April.
Michigan’s foreclosure activity continued to rise in April. The state ranked third nationwide for foreclosure activity and seventh for its foreclosure rate of one filing for every 237 households.
In Michigan, 19,173 properties received a foreclosure filing last month. That represents a 77% rise from April 2009 and an 8% rise from March.
The large spike comes partly from a state law that took effect last July that required a 90-day waiting period before a lender could start foreclosure proceedings to give Michigan borrowers a chance to modify loans if possible. That required lenders to file a notice of default to start the process.
Michigan’s numbers for April are 5,277 notices of default, 7,644 notices of sale and 6,252 bank repossessions.
The foreclosure drop in April for the nation is the first annual decrease since January 2006, said Daren Blomquist, RealtyTrac spokesman.
And while foreclosure activity has begun to plateau, it likely would stay at a high level for some time as lenders work through the backlog of distressed properties, he said. The lower foreclosure rate nationwide also could mean that the streamlined short sale program that started in April is averting foreclosures.
A foreclosure filing is defined as either a notice of default, a sheriff’s sale notice or bank repossession.