N.H. foreclosures fall in July

There were 30 percent fewer foreclosures in July of this year than in the same month last year, according to the New Hampshire Housing Finance Authority.Some 238 foreclosure deeds were recorded in the state in July 2011, which was a 31 percent drop from the 346 foreclosures that were recorded in July 2010. It’s also a significant improvement from the previous month, which saw 343 foreclosures.Year to date, there have been nearly 8 percent fewer foreclosures recorded than in the same period last year.”Most delinquency and foreclosure indicators show improvement this month,” said the authority. “This could mean that we’re beginning to trend toward recovery in the housing market.”Still, the authority was quick to point out that any improvement is highly dependent on general economic conditions, and that further economic setbacks — like an increase in unemployment — would have a negative effect on delinquencies.In the second quarter 2011, mortgage delinquency rates in New Hampshire increased to 7.1 percent. Still, that’s one percentage point lower than the U.S. average and lower than four of the five other New England states.The authority warned that the overall recovery could be slowed since lenders have allowed the period of delinquency prior to foreclosure to extend — in part due to delays in document processing and in part in hopes that the market will improve.”These conditions set the stage for a protracted period during which significant numbers of foreclosed and distressed properties will negatively influence the housing market, slowing its overall recovery.”Foreclosure auction notices — which indicate the number of households that have fallen seriously behind in mortgage payments — also saw a decline to 539 in July from 621 in the prior month.The authority said the decline could be indicative of future improvements in the number of foreclosure deeds, but could also possibly be a result of delays in document processing. — KATHLEEN CALLAHAN/NEW HAMPSHIRE BUSINESS REVIEW