The number of U.S. properties in the foreclosure process climbed 87 percent in June, according to RealtyTrac, a seller of foreclosure data.
Led by filings in California and Florida, where home prices have plummeted, and Ohio and Michigan, which were buffeted by auto industry workers losing their jobs, loan default notices, scheduled auctions and bank repossessions reached 164,644 for the month.
Foreclosures are rising as the number of properties for sale continues to grow and rising interest rates make it more difficult for borrowers to refinance, according to Bloomberg News. Many of those seeking to refinance their mortgages are attempting to get out from under adjustable-rate mortgages re-setting at much higher rates.
RealtyTrac expects foreclosures to reach 1.8 million by the end of the year, despite the fact that June’s foreclosure rate was 7 percent lower than that in May.
“Still, rates in most states remained substantially above last year’s levels,” said James Saccacio, RealtyTrac’s chief executive officer. An estimated 58 percent of properties in the foreclosure process are linked to borrowers with subprime loans, said Bloomberg.
There appears to be little relief in sight, as the National Association of Realtors reduced its sales forecast for the seventh consecutive month, saying existing home sales will fall 5.6 percent for the year.
