The number of lender-completed foreclosures totaled 10,052 in the first quarter this year, representing an approximately 20% decrease from 12 months earlier, according to a new report by data analytics provider Attom. However, on a quarterly basis, repossessed real-estate owned properties rose by 7%. 

The falling numbers come after the introduction of various servicing waterfall programs intended to keep distressed borrowers in their homes during the pandemic. Servicers are also more frequently turning to payment deferrals rather than relying on loan modifications, which was largely the previous norm.

But even with such programs that give borrowers a longer period to become current before reaching the repossession stage, the amount of time to complete a foreclosure decreased by 20% compared to a year ago to 736 days, maintaining the same downward direction since 2020. 

Overall foreclosure trends point to a "market in transition, with slight increases in filings and starts, alongside a notable decrease in REO properties," according to Attom CEO Rob Barber. 

"While foreclosures remain relatively stable, we're closely monitoring these trends. Homeowners continue to hold significant equity, contributing to a persistently hot housing market," he said in a press release. 

Government-sponsored enterprises, federal agencies and services continue to work on developing successor programs for Covid-related borrower assistance that have led to improving foreclosure numbers amid a rising interest-rate environment. 

Following the Federal Housing Administration's decision to offer a partial-claim option earlier this year, the Department of Veterans Affairs rolled out details of a new loan payment program to prevent foreclosures among its borrowers 

But trouble with servicers, particularly when it came to understanding and navigating the loan modification process, ranked as the top pain point among mortgage borrower complaints to the Consumer Financial Protection Bureau last year, showing a degree of confusion still troubling homeowners.   

The states with the most REOs in the first quarter were Michigan, California and Pennsylvania at 1,049, 845 and 838, respectively, Attom's report found.

Meanwhile it only took 123 days — the shortest length of time in the country — to complete foreclosure in Montana, followed by Virginia at 152 and Texas at 163.

On the other end of the spectrum, foreclosures on average, took the longest amount of time at 2,641 days in Louisiana. In Hawaii and New York, completions occurred after 2,031 and 1,958 days.