Foreclosures continue upward trend

IRVINE, Calif. – Compared with July 2007, the number of foreclosure actions nearly tripled last month in Rhode Island but fell in Massachusetts, according to a report today by real estate data publisher RealtyTrac Inc. Nationwide, July foreclosures rose by more than half.
In the Ocean State, 494 foreclosure actions were reported in July: 371 foreclosure sales and 123 real estate owned (REO) properties foreclosed and repurchased by the bank (figures on default filings are not available for Rhode Island). That represented a 16.69-percent decline compared with June (READ MORE) but a 194.05-percent increase compared with July 2007.
In Massachusetts – one of the first states to target distressed homeowners for assistance (READ MORE) – 3,574 foreclosure actions were reported in July: 512 default notices, 1,539 notices of sales and 1,523 REOs. That represented an increase of 17.91 percent compared with June, but a decrease of 22.86 percent from a year ago.
Nationwide, the number of total foreclosure actions rose to 272,171 in July, an increase of 7.85 percent compared with June and 55.12 percent compared with a year ago. That included 110,643 default notices, 84,233 sale notices and 77,295 REOs.
“Bank repossessions, or REOs, continued to be the fastest growing segment of foreclosure activity in July, posting a 184-percent year-over-year increase – compared to a 53-percent year-over-year increase in default notices and an 11-percent year-over-year increase in auction notices,” RealtyTrac CEO James J. Saccacio said in a statement today. “
“The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale,” Saccacio added. “RealtyTrac now has more than three quarters of a million properties in its active REO database – a number that represents approximately 17 percent of the inventory of existing homes for sale reported in June by the National Association of Realtors.”
Last month’s average foreclosure-sales rate nationwide – excluding default or auction sale notices – was one for every 464 households. Rhode Island had the nation’s 22nd highest rate in July, with one foreclosure for every 910 households. The Bay State was No. 20, with a July rate of one foreclosure for every 758 households.
Nevada remained No. 1 for the 19th consecutive month, although its foreclosure rate improved to one in every 106 households from June’s rate of one in every 43. California remained No. 2, improving to one foreclosure for every 182 households. No. 3 was Florida. Filling out the top 10 were Arizona (last month’s No. 3), Ohio, Georgia, Michigan, Colorado, Utah and Virginia.
RealtyTrac Inc. is a publisher of data and advice for real estate markets nationwide. To learn more, visit www.RealtyTrac.com.