Foreclosures Finally ‘Leveling Off’

June 9, 2010 No Comments »

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Foreclosure filings fell three percent in May compared to one month earlier and were less than one percent higher than levels seen a year ago, according to RealtyTrac.

“The numbers in May continued and confirmed the trends we noticed in April: overall foreclosure activity leveling off while lenders work through the backlog of distressed properties that have built up over the past 20 months,” said RealtyTrac CEO James J. Saccacio, in a release.

“Defaults and scheduled auctions combined increased by 28 percent from 2007 to 2008 and another 32 percent from 2008 to 2009 — creating a build-up of delayed bank repossessions. Lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed.”

Bank repossessions, where borrowers actually lose their homes to foreclosure, hit a record high for the second straight month with 93,777 properties lost.

Credit Suisse recently noted that on average it takes 417 days for a lender to send a foreclosure notice after a borrower stops making mortgage payments.

And new delinquencies have slowed thanks to HAMP and other loan modification efforts, but with terrible re-default numbers, you have to wonder if we’re all just buying time.

Interestingly, 10 states accounted for more than 70 percent of the nation’s foreclosure total, with California to blame for more than 22 percent.

Florida accounted for 16 percent, followed by Michigan with six percent, and Arizona and Illinois with five percent each.

Nevada, Georgia, Texas, Ohio, and New Jersey rounded out the top 10 in terms of foreclosure activity.

(photo: pedalfreak)

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