Foreclosure activity in the U.S. continued to level off in May with the number of homes caught up in some stage of the process falling 3% from April, a real estate firm said.
A total of 322,920 properties received some kind of foreclosure filing last month — either default notices, scheduled auctions or bank repossessions — a 3% drop from April and an increase of less than 1% from May 2009, according to RealtyTrac in Irvine.
One in every 400 properties in the country received a filing last month.
While the overall number of U.S. filings was down, and the number of households entering the first stage of the process fell 7% from April, the pace of homes exiting foreclosure and being seized by banks hit a record high in May for the second consecutive month, RealtyTrac said.
The increase in repossessions suggests that lenders are beginning to work through a backlog of properties that developed after many foreclosures were frozen last year by national and regional moratoriums. In addition, the Obama administration pressured lenders to work with defaulting homeowners.