Banks Set Record for Home Repos

By: Timothy McFarlin | Published: July 18th, 2010 | Category: Foreclosure Issues

Recently, the popular real estate data company, RealtyTrac, reported banks in this country repossessed, and took control over, a new all-time, record-setting number of homes within the second quarter. However, RealtyTrac also showed banks slowed down the pace in processing new foreclosures, in order to focus and maintain distressed properties, presently, on the market.

RealtyTrac projects in 2010, over 3 million households will go through the foreclosure process, meaning quite literally: a notice of default, then an auction and finally repossession. Despite a plethora of government programs implemented to assist homeowners facing foreclosure, foreclosure filings, during the first part of ’10, were filed for 1.65 properties—this is a 5% drop from the last part of ‘09; yet, up 8% from the first part of last year.

Consider this number from RealtyTrac: one in every 78 homes had at least one foreclosure filing within the first six months of ‘10. Not much has changed. Jobs continue to be cut and/or not enough are being offered; coupled with a decrease in wages—is all quite enough to stymie this nation’s housing recovery.

According to RealtyTrac’s recent foreclosure report, banks repossessed 269,962 properties this second quarter alone, this is a 5% jump from the first quarter and a heavy 38% jump from the second quarter, same time, last year. At this rate, repossessions are expected to reach the 1 million mark by the end of this year.

RealtyTrac’s Senior Vice President, Rick Sharga, said in a recent interview, “The underlying conditions haven’t improved…(the housing market continues to battle) unemployment, economic displacement in general, and still sits on over 5 million seriously delinquent loans that in all likelihood will at some point go into foreclosure.”

Five years ago, when the housing market was more itself, Sharga pointed out roughly 530,000 households received a foreclosure notice and banks repossessed only about 100,000 homes. This was only five years ago. Today’s climate is clearly more based on chained reactions, involving other markets and industries.

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