Foreclosure Activity Remains At Record High

Posted by Orb Staff on May 13, 2009 No Comments
Categories : Mortgage Servicing

every 374 U.S. housing units received a foreclosure filing in April, the highest monthly foreclosure rate ever posted since RealtyTrac began issuing its report in January 2005, the company says. Foreclosure filings were reported on 342,038 U.S. properties during April. ‘Much of this activity is at the initial stages of foreclosure – the default and auction stages – while bank repossessions, or REOs, were down on a monthly and annual basis to their lowest level since March 2008," says James J. Saccacio, CEO of RealtyTrac. "This suggests that many lenders and servicers are beginning foreclosure proceedings on delinquent loans that had been delayed by legislative and industry moratoria." As these loans proceed through the foreclosure process, Saccacio foresees a corresponding spike in REOs a few months down the road. Nevada, Florida and California posted the highest foreclosure rates in April. Despite an 18% decrease in foreclosure activity from March, Nevada continued to post the nation's highest rate, with one in every 68 housing units receiving a foreclosure filing (more than five times the national average). The decrease in Nevada was driven largely by a 44% drop in bank repossessions from the previous month, although default notices also decreased from the previous month. Total foreclosure activity in Nevada was up 111% from April 2008. Florida suffered a 37% month-over-month increase, with one in every 135 Florida housing units receiving a filing. The increase was driven by a spike in default notices and auction notices, but bank repossessions were down 7% from the previous month, RealtyTrac says. Foreclosure activity in California decreased 10% from the previous month, but the state still posted the nation's third highest state foreclosure rate in April. One in every 138 housing units received a foreclosure filing during the month. The 10 states with the most properties with foreclosure filings in April accounted for more than 75% of the national total. California documented the highest total (96,560), followed by Florida (64,588), Nevada (16,266) and Arizona (16,245). Las Vegas continued to post the top metro foreclosure rate. Foreclosure filings were reported on 14,073 Las Vegas properties in April, a 20% decrease from the previous month. The Cape Coral-Fort Myers, Fla., metro area documented the second highest foreclosure rate, with one in every 57 housing units receiving a foreclosure filing during the month – a 31% increase from the previous month. SOURCE: Rea

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