Just as the Germans and Brits played football on the battlefields across Europe on Christmas day, the US' banks are calling ceasefire on litigious battles as they suspend evictions and foreclosure proceedings for the holiday period.
According to real estate data collection agency RealtyTrac the widespread move brought a 14% decline in the number of foreclosures last month, with 224,394 properties receiving default notices last month. The number of foreclosures also declined on a monthly basis, with 1 in 579 households receiving foreclosure notices in November, compared to 1 in 563 in October.
The firm's chief executive James Saccacio said that the eviction moratorium is partially behind the numbers:
Despite the fall in filings the number of scheduled foreclosure auctions hit a nine-month high. Saccacio explained: "[The] first quarter typically is a better buying season, so you’ll see more of this inventory try to come to market.
"I expect 2012 to look similar to 2011 in volume if nothing changes with government intervention regulations."
With 1 in 175 homes receiving foreclosure notices in November, Nevada remains the worst affected state for the 59th consecutive month. California (one in 211) came second, while Arizona was third (one in 256).
Saccacio's prediction that 2012 volumes will be largely the same as 2011 has to be looked upon as disappointing and pessimistic. For America 2012 will be almost the 7th year of housing market collapse and still we are not to see any improvement? Optimists would say that the rapid rush of auctions in Q1 combined with the foreclosure moratorium will make a big space to clear a large chunk of foreclosure inventory in Q1, setting the way for the rest of the year. Time will tell who is right.
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