Mortgage Defaults Down, Bank Repos Up

August 12, 2010 No Comments »


Default notices continued to slide in July as bank repossessions hit near-record levels, according to foreclosure listing site RealtyTrac.

“Declines in new default notices, which were down on a year-over-year basis for the sixth straight month in July, have been offset by near-record levels of bank repossessions, which increased on a year-over-year basis for the eighth straight month,” said RealtyTrac CEO James J. Saccacio, in a release.

A total of 97,123 properties received a default notice last month, a one percent increase from the previous month, but a 28 percent decline from a year earlier.

They’re off 32 percent from their peak of 142,064 filings back in April 2009, likely thanks to increased loan modification efforts.

Unfortunately, the nasty re-default rate probably means things are a lot worse than they appear.

Meanwhile, lenders took back 92,858 properties in July, a nine percent rise from June and a six percent increase from a year ago.

July’s bank repossession (REO) total was the second highest since RealtyTrac began tracking in April 2005, and was just one percent below the monthly REO activity peak of 93,777 set back in May.

Overall, foreclosure activity increased four percent from June, but was off 10 percent from July 2009.

“July marked the 17th consecutive month with a foreclosure activity total exceeding 300,000,” Saccacio added.

One in every 397 housing units in the United States received a foreclosure filing during the month, with California accounting for 21 percent of the national total.

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