Foreclosure activity drops in February

The number of properties receiving a foreclosure-related notice fell to a 36-month low in February, likely due to lenders stepping back during investigations into the foreclosure process.

Foreclosure listing firm RealtyTrac Inc. reported that 255,101 properties received at least notice in February, down 14 percent from January and 27 percent from February of last year, BusinessWeek reported. The firm tracks default notices, notices of scheduled home auctions and home repossession notices.

Lenders repossessed 64,643 homes in February, down 17 percent from January and 18 percent from last year. In states where courts are involved in the foreclosure process, repossessions were dropped 35 percent.

According to the report, both the cold winter weather and the state and federal investigations into the foreclosure process were factors in the lower activity rates.