Foreclosure Crisis May Be Subsiding

Irvine, CA, May 13, 2010--The foreclosure crisis is finally showing signs of subsiding, according to tracking firm RealtyTrac.

The number of households facing foreclosure in April fell 2% from a year ago, the first annual decline in five years, RealtyTrac Inc. said Thursday.

However, although the number of new delinquencies is dropping, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.

RealtyTrac reported that nearly 334,000 households, or one in every 387 homes, received a foreclosure-related notice in April. That was down more than 9% from March.

Economic problems, such as unemployment or reduced income, are the main catalysts for foreclosures this year.

As the economy turns around, "you will see an improvement in housing markets and in foreclosure activity," said Rick Sharga, a RealtyTrac senior vice president. "The problem is that there's such a backlog right now."