One in every 483 households in the United States was reported to be in the foreclosure process during May as activity increased 48 percent from a year ago, the highest rate since RealtyTrac began issuing its report back in January 2005.
It was the 29th month in a row that foreclosure activity increased on a year-over-year basis, though filings were up just seven percent from April.
More troubling, however, is the fact that bank repossessions (REOs) accounted for 28 percent of all foreclosure activity in May, with REOs up a whopping 35 percent from April and 158 percent from the same month last year.
RealtyTrac said it now has more than 700,000 bank-owned REOs in its database, those that have been foreclosed on and repurchased by the bank or mortgage lender.
Less severe default notices (missed mortgage payments) increased just one percent from April and 35 percent from a year ago, while auction notices actually fell three percent from April, but climbed 13 percent from May 2007.
Nevada posted the highest foreclosure rate for the 17th month running with one in every 118 households in some stage of foreclosure, followed by California (1 in every 183 households) and Arizona (1 in every 201 households).
California led the nation in total foreclosures with filings reported on 71,930 properties, followed by Florida with 37,364 ,and Arizona with 12,959.
Stockton continued to be the foreclosure epicenter in the nation, with one of every 75 households in the foreclosure process, followed by Cape Coral-Fort Meyers, FL (1 in every 79 households) and Merced, CA.