Foreclosure Filings Pick Up Steam

January saw the number of foreclosures on the market increase once again, as banks steadfastly work through the huge number of backlogs which resulted from highly publicized cases of foreclosure abuse, according to the latest stats from RealtyTrac.

Figures for foreclosure filings, which includes scheduled actions, default notices and bank repossessions, increased by 3% in January from December’s totals, although these numbers remain much lower than one year ago.

CNN Money added that the figures amounted to one out of every 624 homes in the US receiving a foreclosure notice. While that statistic may sound alarming, it represents a 19% drop on January 2011’s total number of foreclosures.

The rate at which foreclosure filings were posted slowed considerably in the latter half of 2011 following allegations of robo-signing against major banks. Banks were accused of signing foreclosure documents without properly reviewing each case. As a result of this scandal, banks have changed their procedures for filing foreclosures to speed things up again.

In addition, news of the $25 billion foreclosure settlement earlier this month is likely to see things pick up steam once again.

Brandon Moore of RealtyTrac told reporters that the frozen process of foreclosures was “beginning to thaw.” In Florida for example, foreclosure filings had increased by 14% in January compared to one year ago.

According to CNN Money, housing experts agree that speeding up the backlog of foreclosures is a vital step for the housing market’s recovery, as foreclosed homes have wrecked havoc on home prices in many parts of the country.