July foreclosure filings increase overall in the country
After a pattern of slowing down by reduced foreclosure filings in the last few months, there was a sudden jump in foreclosure activity across the country, if the latest report is any indication. Compared to June, the month of July saw a 4 percent increase in foreclosure activity, whereby 325,229 U.S. properties fell into any one of the three stages of foreclosure – received default notices; were scheduled for public auctions either by a Sheriff Sale or Trustee Sale; and were repossessed by lending institutions, after foreclosure auction.
But comparing year-over-year foreclosure activity, there is some solace that it has decreased by approximately 10 percent from July 2009, although consecutively for the last 17 months, the foreclosure figure of the country is exceeding 300,000 mark.
Looking closely further, foreclosure activity in the second and third stages cause concern to market watchers. While in the first stage that is receipt of default notices, totally 97,123 properties were found, showing just 1 percent increase from June; in the second stage of scheduled foreclosure auctions in July they reached a total of 135,248 delinquent properties. This is an increase by 2 percent from June.
The continued increase in the number of repossessed properties for the last several months did not subside in July either. A total of 92,858 properties were taken back by lenders as repossession, which is an increase month-wise and year-to-year by 9 percent and 6 percent respectively. This is reported as the highest monthly total, next only to 93,777 properties added up in the books of lenders in the month of May 2010.
There is a talk going on in the real estate circles that lenders are more cautious in approaching foreclosures, and give thought to foreclosure alternatives such as loan modifications; reduced monthly installments; short sale options etc. before rushing to confiscate properties and add their deadweight lists. There is an apprehension, but for this changed attitude, the foreclosure repossessions would have been much more.
Otherwise there are not much of changes in the top 10 list of states, worst-hit by foreclosure activity in July as well. Nevada continues for the 43rd month in succession to top the list; followed by Arizona, Florida and California. New competitors for the remaining places are – Idaho; Michigan; Utah; Illinois; Georgia and Maryland – in that order.
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