REOs Set New Monthly Record

Posted by Orb Staff on June 10, 2010 No Comments
Categories : Mortgage Servicing

osure filings, as recorded by RealtyTrac, were reported on 322,920 properties in May – a 3% decrease from April and less than a 1% increase from May 2009. Default notices and foreclosure auctions fell 7% and 4%, respectively, from April, while bank repossessions (i.e., real estate owned (REO)) hit a record monthly high for the second month in a row in May. A total of 93,777 U.S. properties were taken back by lenders during the month – an increase of 1% from the previous month and an increase of 44% from May 2009. All 50 states posted year-over-year increases in REO activity. "Defaults and scheduled auctions combined increased by 28 percent from 2007 to 2008 and another 32 percent from 2008 to 2009 – creating a build-up of delayed bank repossessions,’ says James J. Saccacio, CEO of RealtyTrac. ‘Lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed." Metro foreclosure hot spots continue to post annual declines, RealtyTrac adds. With a 1% increase in foreclosure activity from May 2009, Vallejo-Fairfield, Calif., was the only metro area with a top-10 foreclosure rate to post an annual increase in foreclosure activity. One in every 101 Vallejo-Fairfield properties received a foreclosure notice in May – the fourth-highest foreclosure rate among metropolitan areas with a population of 200,000 or more. All other metro foreclosure rates in the top 10 were in cities with declining foreclosure activity on a year-over-year basis: No. 1 Las Vegas was down nearly 18%; No. 2 Merced, Calif., was down 7%; No. 3 Modesto, Calif., was down nearly 28%; No. 5 Cape Coral-Fort Myers, Fla., was down nearly 19%; No. 6 Stockton, Calif., was down 33%; No. 7 Riverside-San Bernardino-Ontario, Calif., was down nearly 29%; No. 8 Bakersfield, Calif., was down 19%; No. 9 Reno-Sparks, Nev., was down nearly 18%; and No. 10 Phoenix was down nearly 9%. SOURCE: [link=http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&itemid=9427]RealtyTrac

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