Foreclosures Up Significantly in June
Foreclosures were up significantly in June. I expect this to get much worse because the largest group of ARMs that will re-set are still in the future. From Bloomberg:
The number of U.S. properties in foreclosure climbed 87 percent last month from a year earlier as home prices fell and lending standards tightened, making it harder for borrowers to sell homes and refinance mortgages.
There were 164,644 loan default notices, scheduled auctions and bank repossessions in June, led by filings in California, Florida, Ohio and Michigan that together accounted for half the total, according to RealtyTrac, a seller of foreclosure data.
The June foreclosure figure was 7 percent lower than that in May, when filings reached a 30-month high, Irvine, California- based RealtyTrac said. ``Still, rates in most states remained substantially above last year's levels,'' James Saccacio, the company's chief executive officer, said in a statement.
An estimated 58 percent of properties in the foreclosure process are linked to borrowers with subprime loans, and RealtyTrac expects U.S. foreclosures to reach 1.8 million by year's end, Rick Sharga, a spokesman for the company, said in an interview.
Lenders typically begin default proceedings against homeowners after mortgage payments are 90 days late. The foreclosure process varies by state, ranging from 21 days in Texas to an average of 455 days in New York, Sharga said.
Foreclosure Rate Per Number of Households:
The national average is one per 704 households
Nevada - one filing for every 175 households
California - one filing per 315 households
Colorado - one foreclosure per 317 households
Florida - one per 347
Arizona one per 383
Ohio - one per 403
Michigan - one per 420.