Foreclosure Activity Declines in January

A total of 315,716 U.S. homes were mired in the foreclosure process in January, a 10% decline from foreclosure activity measured in December.

That number is still 15% above the level of foreclosure activity reported in January 2009. The report shows that one in every 409 U.S. housing units last month received a foreclosure filing — default notices, scheduled auctions or bank repossessions.

The sharp year-over-year increase is a sign that a backlog of defaulting properties may now be entering the foreclosure phase after several national and local moratoriums expired last year and the Obama administration’s efforts to provide mortgage relief for thousands of Americans has failed to make temporarily lowered payments permanent.

Default notices were down 12% from the previous month but were up 4% from January 2009. Scheduled foreclosure auctions were down 11% from the previous month but were up 15% from January 2009.