Foreclosures, Meltdown, Mortgage Defaults

Nation’s foreclosure plague widens

From CNN:

The foreclosure juggernaut lurched forward in July as banks took back 77,295 homes - up 8% in a month and 183% in a year, a report issued Thursday shows.

The company says it has more than 750,000 active listings of repossessed homes for sale on its database. That represents about 17% of all the existing homes for sale in the United States as reported by the National Association of Realtors.

Total foreclosure filings - delinquency notices, auction sale notices and bank repossessions - were up 8% from June and 55% year-over-year, according to RealtyTrac, an online marketer of foreclosed homes.

One of every 464 U.S. households received at least one filing during July. And more than 680,000 homes have been repossessed by lenders since the beginning of August 2007, when the credit crunch hit.

“Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity,” said RealtyTrac’s chief executive officer, James Saccacio, in a statement. “The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale.”

Bloated inventory is an understatement. Many attribute the recent uptick in home sales to an increase in volume for REOs and short sales - and with the pace of foreclosures continuing unabated, that’s a trend that’s likely to continue.


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