Foreclosure freeze cuts sales, supply in hardest-hit U.S. states
U.S. home foreclosure sales are slowing in the states hardest-hit by the real estate crash as banks review their practices and delay seizures. In Arizona, California and Nevada, foreclosure auctions on courthouse steps, known as trustee sales, are down 42% since Sept. 20, according to ForeclosureRadar, a real estate tracking service in Discovery Bay, Calif. In Florida’s Miami-Dade and Broward counties, fewer foreclosures have led to 18% declines this month in the number of repossessed homes listed for sale, said Ron Shuffield of Esslinger, Wooten, Maxwell Inc., a realty firm based in Coral Gables, Fla. In a real estate market where as many as 7 million homes face foreclosure or have already been seized by lenders, according to Zillow Inc., a clog in the pipeline may delay a housing recovery, which won’t occur until home prices stop falling.