Foreclosure Activity Slows, But Repossessions Rise

June 11, 2009 No Comments »

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Foreclosure activity slipped six percent in May from a month earlier, but was still up 18 percent from May 2008, according to RealtyTrac.

A foreclosure filing was reported on 321,480 U.S. properties during the month, or one in every 398 households nationwide.

“May foreclosure activity was the third highest month on record, and marked the third straight month where the total number of properties with foreclosure filings exceeded 300,000 — a first in the history of our report,” said James J. Saccacio, RealtyTrac CEO, in a release.

“While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs, were up 2 percent thanks largely to substantial  increases in several states, including Michigan, Arizona, Washington, Nevada, Oregon and New York.

Interestingly, the top 10 states accounted for nearly 77 percent of total foreclosure activity, with California reporting the highest number of filings.

The Golden State saw filings fall month-to-month, but numbers were still up 23 percent from a year ago.

Florida and Nevada claimed the second and third spots, respectively, with Nevada continuing to document the nation’s highest foreclosure rate with one in every 64 households receiving a foreclosure notice during the month.

“We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end,” Saccacio added.

That’s certainly not good news, especially seeing that new moratoriums are still being implemented to this day.

It’s important to note that not all homes receiving a filing will be lost, as many are simply default notices and may be able to avoid foreclosure thanks to loan modifications and/or other arrangements.

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