Foreclosures in Silicon Valley have taken a sharp drop lately. According to ForeclosureRadar, the number of housing foreclosures in Santa Clara County fell 44% percent last month compared to September.
In September, there were about 1,600 foreclosures scheduled to take place in September. 647 of those went through. Although the number of scheduled foreclosures in October rose to 1,700, there were only 364 that were finalized.
While this may give hope to current homeowners facing foreclosure, it could cause problems for lenders. Analysts say the number of foreclosures is going down because banks have decided to retool existing home loans that are in trouble with lower interest rates as opposed to issuing default notices to borrowers who have been having trouble keeping up with their mortgage payments.
The decline in foreclosures in Santa Clara County is above the state average, which was posted at 39%.
