Foreclosure notices in metro Atlanta fell to their lowest point in more than two and a half years in September, the latest low point in a trend that has seen figures yo-yo 25 percent or more from month to month.
September notices totaled 7,324, according to Kennesaw-based Equity Depot. The high this year was in February, with 10,848 notices posted. Notices hit the mid 7,000s in April and June, with higher numbers between the lows.
Foreclosure notices are the first step in the process but do not always lead to a repossession.
Rick Floyd, executive vice president of lender Real Estate Mortgage Network and past president of the Mortgage Bankers Association of Georgia, said loan servicers have slowed foreclosures because home prices are weak and inventory is high.
Servicers also are working harder with borrowers to keep people out of foreclosure by restructuring loans, Floyd said, and that clogs the system.
Recently, Floyd added, servicers have been slapped for conducting foreclosures improperly and are looking for better or cheaper alternatives.
There’s also the possibility the market has bottomed, but it’s too early to say, Floyd said.
Regina Ambrose, an associate broker at Chapman Hall Realtors, said she sees more short sales, which can cut foreclosures. A short sale is when a homeowner in distress sells a house for less than it is worth. The lien holder agrees to accept that amount for the payoff, preventing a foreclosure.
Ambrose believes banks are more amenable to short sales and real estate agents are becoming expert in them.
“Five years ago, nobody knew what a short sale was,” she said.
Barry Bramlett, president of Equity Depot, said he has not seen overnight changes in the market in 20 years of tracking housing numbers.
“Increases or decreases usually track up or down over time.”
“We’ll just have to see what transpires down the road,” he said. “I just think it’s all uncharted territory with few answers.”
Steve Palm, of Smart Numbers, another housing data firm, said the fluctuations may just show that volatility is the new reality.
“I have no idea [what’s driving it],” he said
The good news is that closings on previously owned homes are rising, Palm said. In a report last month, Smart Numbers said 5,072 homes sold in July, up 26 percent over July 2010. But July 2010 sales were particularly bad, and average sales prices this July fell 13 percent to $181,975.
“It’s just not getting any better,” Palm said.
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