Credit research and ratings agency DBRS said recent increases in judicial state foreclosures will likely decline in 2013.
“This is due to the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” said DBRS analysts in the latest Structured Finance Newsletter.
“DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance/counter offer process in order to be more responsive to bids on properties.”
As a result, foreclosures will decline in kind.
It’s a continuing trend.
The 531,576 properties that had foreclosure filings in the 3rd Quarter 2012 showed a 5% decrease from the 2nd Quarter and a 13% decrease year-over-year.
The report also shows that one in every 248 U.S. housing units received at least one foreclosure filing during this past quarter.