Foreclosure Rate Hits New Record High

May 13, 2009 No Comments »

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One in every 374 U.S. households received some type of foreclosure filing last month, leading to the highest foreclosure rate since RealtyTrac began issuing its report in early 2005.

However, the increase in filings was less than one percent month-to-month, though up 32 percent from April 2008.

“Total foreclosure activity in April ended up slightly above the previous month, once again hitting a record-high level,” said James J. Saccacio, CEO of RealtyTrac, in a release.

“Much of this activity is at the initial stages of foreclosure – the default and auction stages – while bank repossessions, or REOs, were down on a monthly and annual basis to their lowest level since March 2008.”

This suggests that banks and mortgage lenders are beginning to foreclose on homeowners who were enjoying the various moratoria floating around the last several months.

“It’s likely that we’ll see a corresponding spike in REOs as these loans move through the foreclosure process over the next few months,” Saccacio added.

The states of Nevada, Florida, California, Arizona, and Idaho had the highest foreclosure rates in the country.

And the top ten states, which included Utah, Georgia, Illinois, Colorado, and Ohio, accounted for more than 75 percent of the total foreclosure activity nationwide.

The city of Las Vegas continued to post the highest foreclosure rate, with one in every 56 housing units receiving a notice during the month, though filings decreased 20 percent from the previous month.

It was followed very closely by Cape Coral-Fort Myers, Florida, which saw one filing for every 57 properties during the month.

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