Foreclosure filings in the United States fell 9 percent in September from a month ago, according to RealtyTrac's latest foreclosures report. That is 19 percent below last year's figures.
September saw the 48th consecutive decline in foreclosure filings hitting an eight-year low. A total of 106,866 homes were foreclosed in the month of September with 22,930 homes being repossessed by the banks and 48,399 properties set for foreclosure auctions.
Though foreclosure filings fell in September, it picked up 0.42 percent from the previous quarter marking the first quarterly increase since the third quarter of 2013.
The slight uptick was due to the 2 percent increase in default notices and seven percent increase in foreclosure auctions. But, the number of properties repossessed by lenders fell 12 percent from a quarter ago.
"September foreclosure activity was back to pre-housing bubble levels nationwide, in large part thanks to a continued slide in bank repossessions," said Daren Blomquist, vice president at RealtyTrac, in a statement.
"However, a recent rise in scheduled foreclosure auctions in many markets across the country shows lenders are continuing to clean house of lingering delinquent loans. This rise in scheduled auctions foreshadows a corresponding rise in bank repossessions and auction sales to third party buyers in the coming months," Blomquist added.
Foreclosure activity rates were reportedly high in states that were hit the hardest in the 2007-08 housing market crash. Below is a graph that shows 10 states where foreclosures rose the most.
Lower the foreclosure activity, better the health of the housing economy. It shows that more people are able to pay off their mortgage and are above water. A recent CoreLogic report showed that more people regained positive equity in 2014.
"Many homeowners across the country are seeing the equity value in their homes grow, which lifts the economy as a whole," Anand Nallathambi, president and CEO of CoreLogic, added in the statement.
"With more and more borrowers regaining equity, we expect homeownership to become an increasingly attractive option for many who have remained on the sidelines in the aftermath of the great recession. This should provide more opportunities for people to sell their homes, purchase a different home or refinance an existing mortgage," Nallathambi added.
