Foreclosure listing service RealtyTrac's July numbers show overall activity fell 11% from the previous month and 25% from a year ago. The numbers are mixed, however, if you dig deeper.
The end of the foreclosure process - bank repossessions or REOs - are down by 44% annually. But the first step - "notices of default" - have been on the rise for the past three-months.
"Is this bad or good news right (laughs)? It's a mix."
That's Daren Blomquist, RealtyTrac's Vice-President.
"At some point, I do think those foreclosure starts are
going to translate into at least a slight increase in the REOs down
the road and also an increase in short-sales in the short
term."
A short sale is when the bank agrees to sell the property for
less than the value of the mortgage.
Blomquist says lenders are much more willing to do short-sales
now because repossessing a home has become a lengthy and expensive
process.