When the economy took a negative turn the housing market suffered. Since 2007 foreclosure rates have been high. Now they seem to have dropped back down to the rate they were back then. This is giving many, new hope for the economy and the future of the housing market.

The good news is that the foreclosure crisis seems to be over. This is allowing many to breathe a sigh of relief as things have been rough for many for some time. While this is good news some are wondering what is causing the change.

New regulations in California have a big part to play in this. For years the state had been recording the highest number of foreclosure filings of any state in the country. A Homeowner Bill of Rights has been put into place. This offers more protections for the borrowers in this state that have gone into default. As a result of this foreclosure filings in this state alone dropped 62% in one month.

English: Sign of the times - Foreclosure

Under these new protections all mortgage servicers must cut short all foreclosure proceedings once the borrower applies for a mortgage modification. Servicers must also be careful because if they file multiple unverified documents in foreclosure proceedings they can face fines up to $7,500. No mortgage servicer wants to pay these fines, so they are watching their step, which is taking some stress off of the borrower.

Now that California is not the top state in foreclosures, Florida has taken that title. In Florida, one out of every three hundred homes files foreclosure applications. The next states to follow are Nevada and Illinois.

This does not mean that the foreclosure problem our nation has been facing is fixed. It does however; mean that we are getting closer to fixing it and ending it. Every step we take in the right direction means we are one step closer to this being over.

There is light at the end of the foreclosure tunnel. The crisis is over but the problem itself is not fixed. We are working toward fixing it but more time is necessary. It is obvious we are getting close. If we look we can see all around us that things are getting better. It may be slow, but it will be worth it.