foreclosures drop in may for second month in a row

foreclosures fell in may to the lowest level since 2006.  mortgage lenders also took back over fewer properties in may marking the second montly decline in a row according to realty trac, inc.  banks are on track to repossess 200,000 fewer homes in 2011 than last year.  the pace that homes were going into foreclosure dropped sharply in the fall of 2010.

part of the slump could be attributed to allegations that banks have been using inaccurate documentation to complete the process.  in a lot of cases, lenders have had to resubmit the paperwork to the courts which has essentially bottlenecked any forward traction.

banks already have over 900,000 properties on the market.  in most cases, if those aren’t selling due to the slower housing market, there’s little motivation to push forward efforts to take back more homes that will most likely sit vacant without being cared for.

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