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RealtyTrac, an online marketplace for foreclosure properties, recently released its U.S. Foreclosure Market Report for May 2011. It shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 214,927 U.S. properties in May. That’s a 2 percent decrease from April and a 33 percent decrease from May 2010.

The report also shows that one in every 605 U.S. housing units received a foreclosure filing during the month of May.

Hope Now, a private-sector alliance of mortgage servicers, investors, mortgage insurers and nonprofit counselors, is also reporting a reduction in the number of foreclosures. If this trend continues, it will boost the recovering market for conventional home sales and lessen appraisal problems created by under-market valuations of distressed properties.

Covering activity in April, the Hope Now report shows nationwide foreclosure starts were approximately 163,000 — down from 217,000 in the previous month, a decrease of 25 percent. Completed foreclosure sales dropped to 73,000 for April, compared with 85,000 in March; it represents a decrease of 14 percent.

For the month of April, permanent proprietary loan modifications for homeowners were 57,000, down from 77,000 in March, representing a 26 percent decline.

However, characteristics of these completed modifications remained strong. About 82 percent had reduced principle and interest payments, 78 percent had fixed interest rates of five years or more, and 53 percent had reduced principle and interest payments of 10 percent or greater, according to the report.

“Hope Now is convinced that the efforts of its public, private and nonprofit partners to assist at-risk homeowners are making a significant difference during this difficult time for the nation’s housing market,” said Faith Schwartz, Hope Now’s executive
director.

Jim Woodard writes for Creators Syndicate, www.creators.com.