U.S. homes repossessed by banks set to hit record 1 million this year
By Ariana Eunjung Cha
The number of American homes repossessed by banks hit a record high in the second quarter of the year, putting the number of foreclosures on track to hit a record 1 million by the end of 2010.
Bank repossessions increased 5 percent from the previous quarter and 38 percent from the second quarter of 2009 to 268,962, according to data released early Thursday by RealtyTrac, an Irvine, Calif., firm that tracks the foreclosure market.
But while the number of homes in the final stage of the foreclosure process increased, the number of new filings fell. Both default and auction notices were down on a month-over-month and year-over-year basis.
The combination of bad news and good news can be explained by two seemingly contradictory trends that are the result of Obama administration efforts to encourage with lenders to help homeowners in distresss.
Over the past few months, lenders have been clearing out a backlog of homes that had been temporarily saved from foreclosure thanks to prevention efforts in 2009. And at the same time, they have been delaying foreclosure proceedings on homeowners with delinquent payments and instead trying to work with more aggressive loan modification strategies or to accept a short sale.
So while foreclosure activity may seem to be flattening out--particularly in hard-hit states like California, where filings were down 13 percent from a year ago, and in Nevada, where they were down 6 percent from a year ago--it's probably only temporary.
"We're seeing some positive signs, but the caveat is that we believe most of the decrease is not the result of the housing market really recovering but more of the result of artificial intervention on the part of government and lenders," said Daren Blomquist, director of marketing communications for RealtyTrac.
The new foreclosure data do little to dispel worries about the stability of the economic recovery, as dismal indicators such as declining retail sales and lowered growth forecasts from the Federal Reserve continued to pile up this week.
Ariana Eunjung Cha
July 15, 2010; 12:02 AM ET
Save & Share: Previous: SEC begins overhaul of voting system for investors
Next: Morning briefing: China's growth slows, help for Greek banks
Posted by: thelongblueline | July 15, 2010 7:03 AM | Report abuse
Posted by: Religulous | July 15, 2010 8:02 AM | Report abuse
Posted by: bobfbell | July 15, 2010 8:27 AM | Report abuse
Posted by: richard36 | July 15, 2010 8:32 AM | Report abuse
Posted by: Cavan9 | July 15, 2010 9:06 AM | Report abuse
Posted by: access11 | July 15, 2010 9:26 AM | Report abuse
Posted by: adrienne_najjar | July 15, 2010 10:02 AM | Report abuse
Posted by: Gertie3 | July 15, 2010 10:32 AM | Report abuse
Posted by: knjincvc | July 15, 2010 10:54 AM | Report abuse
Posted by: knjincvc | July 15, 2010 11:08 AM | Report abuse
Posted by: willhowell55 | July 15, 2010 2:00 PM | Report abuse
The comments to this entry are closed.