Foreclosures Spike Again In June

Total foreclosures were up 15% through the first half of 2009 according to RealtyTrac. The number is getting all kinds of attention today, though anyone who’s been paying attention knows this year is much worse than last year, in terms of sheer numbers.

What’s more significant is the June number, which confirms that things are still getting worse right now:

Foreclosure filings were reported on 336,173 U.S. properties in June, the fourth straight monthly total exceeding 300,000 and helping to boost the second quarter total to the highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005. Foreclosure filings were reported on 889,829 U.S. properties in the second quarter, an increase of nearly 11 per cent from the previous quarter and a 20 per cent increase from the second quarter of 2008.

“In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac. “Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”

Drilling down, all the states that have been so weak, continue to lead the pack in terms of carnage:

More than 6 per cent of Nevada housing units (one in 16) received at least one foreclosure filing in the first half of 2009, giving it the nation’s highest foreclosure rate during the six-month period. A total of 68,708 Nevada properties received a foreclosure filing from January to June, an increase of 23 per cent from the previous six months and an increase of 61 per cent from the first half of 2008.

Arizona registered the nation’s second highest state foreclosure rate in the first half of 2009, with 3.37 per cent of its housing units (one in 30) receiving at least one foreclosure filing, and Florida registered the nation’s third highest state foreclosure rate, with 3.08 per cent of its housing units (one in 33) receiving at least one foreclosure filing.

Other states with foreclosure rates ranking among the nation’s 10 highest were California (2.94 per cent), Utah (1.46 per cent), Georgia (1.42 per cent), Michigan (1.34 per cent), Illinois (1.31 per cent), Idaho (1.26 per cent) and Colorado (1.25 per cent).

New York is still only 36th. Not bad!

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