Fewer homes in Mass. lost to lenders

Real estate specialists said the dramatic falloff can be largely attributed to lenders pulling back on foreclosures, not an improving economy, and many expect the number of foreclosures to soon start increasing.

Foreclosures started to slow nationwide last year after several bank employees - now known as robosigners - acknowledged that they signed foreclosure-related documents without reviewing the paperwork. The admissions prompted widespread scrutiny of foreclosure practices, and many major US lenders voluntarily halted or delayed property-takings while they reviewed their procedures.

The latest Massachusetts figures are “excessively low,’’ said Tim H. Davis, a researcher for the Massachusetts Housing Partnership, a nonprofit group that supports affordable housing. “I still forecast they are going to have to come up.’’

Grace Ross, coordinator for the Massachusetts Alliance Against Predatory Lending, based in Worcester, speculated that many foreclosures also are being stalled in the courts. An increasing number of homeowners are challenging their property seizures on the grounds they were not conducted properly.

“There are a lot more temporary stops to foreclosure auc tions than there were before,’’ said Ross.

Foreclosure petitions, the first step in the seizure process, also declined in May, to 699, which is about 67 percent fewer than the 2,110 recorded in May 2010. The number of petitions filed through May fell to 4,426, an almost 60 percent drop from 11,118 filed during the same months in 2010.

“Delayed foreclosures are masking the reality of the market,’’ said Vincent Valvo, editor in chief of Banker & Tradesman, which is published by Warren Group. “Lenders are continuing to be cautious with the legal process.’’

Jenifer B. McKim can be reached at jmckim@globe.com.