Foreclosure Notices Drop Sharply

Via Peter King at MorgageLoans.com:

Foreclosures tumbled in April, with the number of homeowners receiving initial notices of default down by 25 percent from their March level.  New figures from the HOPE NOW Alliance indicate there were 163,000 foreclosure starts in April, down from 217,000 the month before.

This is good news for the overall health of the housing market, but I wouldn't read too far into these seemingly positive figures.  There is skepticism that banks have been processing foreclosures at a slower rate in light of the "robo-signing" scandal, and that they will pick up the pace once they settle with the Department of Housing and Urban Development (HUD).  Also, although the number of foreclosure notices is down, the data indicates that the number of mortgage delinquencies has remained steady, with 2.66 home loans at least 60 days past due.