Mortgage default notices slow sharply in January

LOS ANGELES (AP) - New data show fewer U.S. homes entered the foreclosure process in January than in any month in more than three years.

Foreclosure listing service RealtyTrac Inc. said Thursday that the number of scheduled foreclosure auctions also declined, falling to the lowest level in two years.

The decline comes as many lenders are taking longer to move against homeowners who have fallen behind on mortgage payments. Lenders have had to revisit thousands of foreclosure cases following documentation problems that surfaced last fall.

Lenders did step up home repossessions in January, however.

Banks took back 78,133 properties last month, an increase of 12 percent from December.