 A startling new study released on Tuesday by RealtyTrac shows that nearly 650,000 foreclosures were filed in the first quarter of 2008. RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties.
According to the study, the number of foreclosure filings jumped more than 112% from last year's figures. The report includes notices of default, auction sales, and bank repossessions. Even more astonishing, the data shows 156,463 families losing their homes so far this year. This represents one out of every 194 families filing for, or losing their homes to foreclosure. For the month of March, foreclosure filings reached 234,685 properties nationwide. This marks a 5% increase from February and a staggering 57% increase from March 2007. In March 2008 alone, one in every 538 U.S. households received a foreclosure filing. James Saccacio, CEO of RealtyTrac says, "The March numbers show that overall foreclosure activity so far this year continues to run nearly 60% above the levels we saw last year. On a year-over-year basis, default notices were up nearly 57% and bank repossessions were up nearly 129%, but auction notices were up only 32%, indicating that more defaulting homeowners are simply walking away and deeding their properties back to the foreclosing lender. This deed-in-lieu-of-foreclosure process allows the lender to take possession of a property without putting it up for public foreclosure auction." The hardest hit regions so far this year continues to be Nevada, California, and Arizona; states that saw the biggest price inflations during the housing bubble. Nevada has as many as one in every 54 homes receiving some type of foreclosure filing. Despite widespread relief efforts, foreclosure filings have continued spike dramatically. The news may only get worse as $362 billion worth of subprime mortgages are expected to reset by the end of 2008. Experts estimate that the worst of the subprime resets will be coming in the third and fourth quarter of 2008, probably marking the peak of foreclosure filings. (Posted by: K.Skowronski) Article Sources Foreclosure Activity Increases 5% In March, RealtyTrac.com Foreclosures Spike 112% - No End in Sight, CNNmoney.com
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