More Foreclosed Homes Taken by Banks

By: Timothy McFarlin | Published: June 21st, 2010 | Category: Foreclosure Issues

Today, banks are scooping up more homes under foreclosure, as the overall number of homeowners behind on paying their mortgages is drastically dropping. According to an online marketer of foreclosed properties, RealtyTrac, the total of bank repossessions reached a record monthly high in the month of May. Lenders, it seems, took over nearly 93,777 properties—a 1% increase from April and 44% more than during the same timeframe, the previous year.

Foreclosure filings dropped 3% from the previous month. One in every 400 homes received a foreclosure notice last month. RealtyTrac’s Chief Executive, James Saccacio said recently, “lenders appear to be ramping up the pace of completing those forestalled foreclosures even while the inflow of delinquencies into the foreclosure process has slowed.”

In lieu of the mortgage meltdown, lenders generally, have taken their time repossessing homes as they deal with an influx of borrower defaults. With the housing market becoming more stabile, they are now refocusing on taking back homes.

On an average, it can often take a year or more to complete a foreclosure and go through the process. In the states requiring lenders to bring delinquent borrowers to court before foreclosure, the whole process can take up to two years. As it is, Nevada, Arizona and Florida had the highest state foreclosure rates in May.

Approximately, one in every 79 homes in Nevada received a foreclosure filing last month. This figure dropped roughly 12% from April and 16% from 2009. Nevada’s foreclosure rate is presently close to five times the national average.

In Arizona, foreclosure activities increased by a little less than 1% in May from the prior month. One in every 169 properties received a foreclosure notice in May. Meanwhile in Florida, one in every 174 properties received a foreclosure filing in May. This number jumped 4.76% from April.

Throughout the country, one in every 400 homes received a notice in May, a figure which decreased 3.27% from last month and rose 0.45% from last year.

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