Foreclosures Decline Again in July

Irvine, CA, Aug. 11, 2011 -- Foreclosures in the U.S. fell again in July, according to tracking firm RealtyTrac, as banks are taking a more cautious approach.

The firm said 59,516 homes received an initial default notice last month, down 7% from June and down 39% from July 2010.

The notices, which are the first step in the foreclosure process, have fallen 58% below their April 2009 peak.

Homes scheduled for auction also decreased in July, while the number of homes seized by banks slipped 1% from June and slid 27% versus July last year, the firm said.

The slowdown is the result of banks' reluctance to take back properties while there is a glut of unsold foreclosed homes on the market.

"I'm wondering if we're not seeing a new normal, where basically the lenders will move on these properties as quickly as they think they can sell them off in the market," said Rick Sharga, a senior vice president at RealtyTrac.