Pace of Foreclosures Slowing, But Danger Not Over

Irvine, CA, March 11, 2010–The rate of U.S. foreclosures appears to be slowing.

RealtyTrac Inc. said Thursday that the number of households facing foreclosure in February grew 6 percent from the year-ago level, the smallest annual increase in four years.

More than 308,000 households, or one in every 418 homes, received a foreclosure-related notice, the foreclosure listings company reported. That was down more than 2 percent from January

“It’s premature to declare victory just yet,” said Rick Sharga, a RealtyTrac senior vice president for RealtyTrac.

“If this is the beginning of a slowdown in growth rates, that would be a good thing.”

Banks repossessed nearly 79,000 homes last month, down 10 percent from January but still up 6 percent from February 2009.

A record 2.8 million households were threatened with foreclosure last year, RealtyTrac said, and the number is expected to rise to more than 3 million homes this year.

Economic woes, such as unemployment, are expected to be the main catalysts for foreclosures this year.