July Foreclosures Spike To Record Highs

foreclosed tbi

What happened to the green shoots home builders recently told us about? Foreclosures are worse than ever.

RealtyTrac: RealtyTrac the leading online marketplace for foreclosure properties, today released its July 2009 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 360,149 U.S. properties during the month, an increase of nearly 7 per cent from the previous month and an increase of 32 per cent from July 2008. The report also shows that one in every 355 U.S. housing units received a foreclosure filing in July.

“July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity,” noted James J. Saccacio, chief executive officer of RealtyTrac. “Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions.”

Meanwhile the states that form the epicentre of the crisis continue to be, well, horrible:

For the 31st consecutive month Nevada documented the nation’s highest state foreclosure rate, with one in every 56 housing units receiving a foreclosure filing in July — more than six times the national average. Initial default notices (NOD) in Nevada decreased 18 per cent from the previous month, likely the result of a new state law requiring lenders to offer mediation to homeowners facing foreclosure. The law took effect July 1. Meanwhile, scheduled auctions (NTS) and bank repossessions (REO) in Nevada both increased more than 20 per cent from the previous month, boosting overall foreclosure activity in the state by 4 per cent on a month-over-month basis.

Initial defaults (NOD) in California spiked 15 per cent from the previous month, and the state registered the nation’s second highest state foreclosure rate for the third month in a row. One in every 123 California housing units received a foreclosure filing in July, nearly three times the national average. Scheduled auctions (NTS) in California were down 1 per cent from the previous month, but bank repossessions (REO) were up 4 per cent — leaving overall foreclosure activity up nearly 7 per cent on a month-over-month basis.

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