Foreclosure filings down 14 percent in February

U.S. homeowners appear to be handling their mortgage payments more responsibly, according to a recent report from RealtyTrac.

The company, which serves as an online marketplace for foreclosed properties, recently reported that foreclosure filings decreased 14 percent from January to February, dropping to 225,101 properties. February's figures were 27 percent lower than the numbers tallied during the same month in 2010. RealtyTrac attributes the drop in foreclosure activity to a backup in processing; however, part of the drop may stem from consumers managing their finances more efficiently, paying down their debt and rebuilding their credit scores.

Many consumers who are in the foreclosure process would benefit from refinancing their mortgage, but their credit scores don't allow them to qualify for significantly better rates. If these individuals were able to improve their credit standing, they may be able to revise their home loans and save their properties.

One way some individuals have been able to boost their credit scores is by obtaining credit repair. Creditors may relay mistaken information to the credit bureaus, which unfairly damages a person's credit report and score. As a result, they are unable to qualify for a refinance for their mortgage.

Consumers facing this dilemma may benefit from working with a credit repair company to investigate and dispute erroneous information on their credit reports. By removing these questionable items, consumers may get the credit help they need to save their homes.