Foreclosures up despite moratorium and legislative efforts
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By MarketWatch
TEL AVIV (MarketWatch) -- U.S. properties in the process of foreclosure
in the second quarter rose to a record quarterly level of nearly
890,000, RealtyTrac reported on Thursday.
The total is up 11% from the first quarter and 20% from the
year-earlier period, the Irvine, Calif., online marketplace and
research firm reported.
In June, properties in foreclosure totaled 336,000, exceeding 300,000
for a fourth month and driving the second-quarter total to the highest
level since RealtyTrac began its survey in the first quarter of 2005.
As of June 30, nearly 1.53 million U.S. properties were subject to a
default notice, auction-sale notice, or bank repossession, RealtyTrac
reported.
Nearly 1.2% of all U.S. housing units -- 1 in 84 -- were subject to a foreclosure filing in the first half, RealtyTrac reported.
Despite an industrywide moratorium on foreclosures earlier this year
plus legislative action and more efforts by lenders to modify the terms
of mortgages, "foreclosure activity continues to increase to record
levels," RealtyTrac Chief Executive James J. Saccacio said in a
statement.
People who've lost jobs "account for much" of the increase, and
borrowers who owe more on their mortgages than their homes are worth
represent a significant risk going forward, he said.
"Stemming the tide of foreclosures is a critical component to
stabilizing the housing market," and lenders and the government must
find new approaches to the issue, the executive said.
In the first half of 2009, properties in foreclosure rose 9% from
second-half 2008 and 15% from the year-earlier period, RealtyTrac
reported.
Nevada was the state with the highest first-half foreclosure rate, 1 in
every 16 housing units, RealtyTrac reported. Foreclosed properties
totaled more than 68,700, up 23% from second-half 2008 and up 61% from
first-half 2008.
Arizona was second, with 1 in every 30 properties in foreclosure, and Florida was third, with 1 in 33, RealtyTrac reported.
In absolute numbers, California was No. 1, with more than 391,600
properties subject to a foreclosure filing. That's 1 in every 34 of the
state's housing units, which is the fourth-highest rate among the
states. The total was up 14% from second-half 2008 and up 15% from
first-half 2008.
Florida was second, with more than 268,000 properties, and Arizona was third, with nearly 90,000.
