One in every 464 U.S. households — 272,171 U.S. properties — received a foreclosure filing, got a default notice, was warned of a pending auction
or were foreclosed on
during the month of July. That represents an 8% increase from the previous month, and a 55% increase year over year.
Falling prices are putting more homeowners equity underwater, and is accelerating the housing decline.
Bank Repossessions (REOs) accounted for 28 percent of all activity during the month, while defaults accounted for 41 percent and auction notices accounted for 31 percent. That is in contrast to REOs accounting for just 16 percent of all activity in July 2007, while defaults in July 2007 were still at 41 percent and auction were at 43 percent. This shift in percentages shows that a higher proportion of properties that enter the forecosure process are ending up repossessed by lenders.
Nevada, California, Florida posted the top state foreclosure rates (%), while California, Florida, Ohio reported the highest foreclosure totals (#).
When it comes to foreclosures, California is ground zero.
The worst area in the July report was Cape Coral-Fort Myers, Florida, where one in every 64 households received a foreclosure filing. That’s 7X the national average. The next 3 highest foreclosure cities were all in California: Merced (1 in 73), Stockton, and Modesto (1 in 82). Then came Las Vegas at # five, followed by three more California area: Riverside-San Bernardino, Bakersfield and Vallejo-Fairfield. Fort Lauderdale was #9, and Phoenix was # 10.
The CEO of RealtyTrac stated:
“Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July, posting a 184 percent year-over-year increase — compared to a 53 percent year-over-year increase in default notices and an 11 percent year-over-year increase in auction notices. The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale. RealtyTrac now has more than three quarters of a million properties in its active REO database, a number that represents approximately 17 percent of the inventory of existing homes for sale reported in June by the National Association of Realtors.” –James J. Saccacio
Note: "Foreclosure filings" includes default notices, auction sale notices and bank repossessions.
FORECLOSURE ACTIVITY INCREASES 8 PERCENT IN JULY Activity Up 55 Percent From July 2007
By RealtyTrac Staff
RealtyTrac, August 14, 2008
July Foreclosure Report
Foreclosure Pulse, August 14, 2008 2:00 AM
U.S. Foreclosures Increase 55%, Bank Seizures Rise to Record
Bloomberg, Aug. 14 2008
US foreclosure filings surge 55 percent
AP Thu Aug 14, 12:02 AM ET