Foreclosures Slow for Third Straight Month

July 15, 2010 No Comments »

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Foreclosure filings were reported on 318,841 properties during June, a three percent decrease from one month earlier and nearly seven percent lower than June 2009, RealtyTrac reported today.

However, the 1.65 million properties that received foreclosure notices during the first half of 2010 marked an eight percent increase from the first six months of 2009.

And bank repossessions, where borrowers actually lose their homes to foreclosure, hit a new record high of 269,962 in the second quarter.

Bank repos were up five percent from the previous quarter and 38 percent from the second quarter of 2009.

“The second quarter was a tale of two trends,” said RealtyTrac CEO James J. Saccacio, in a statement. “The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives.”

“Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.”

He added that the midyear numbers put us on pace to exceed three million foreclosure notices in 2010, and a staggering one million bank repossessions.

The usual suspects, Nevada, Arizona, and Florida, continue to post the highest foreclosure rates, while California leads the nation in foreclosure totals.

The big question is whether efforts made by banks and lenders to slow foreclosures will actually be meaningful, or simply delay the inevitable.

Re-default numbers on loan modifications are still pretty awful…

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