The epidemic of foreclosures is rising, according to newly released figures from RealtyTrac, despite a slight slowdown in activity during the month of May. Year over year foreclosures rose 18%.
Foreclosure filings, including default notices, scheduled auctions and bank repossessions were reported on 321,480 properties during the month, a decrease of 6% from April. The drop apparently developed as a result of moratoriums on foreclosures by the nation's largest banks and mortgage companies.
“While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs were up 2% thanks largely to substantial increases in several states, including Michigan, Arizona, Washington, Nevada, Oregon and New York,” said James Saccacio, chief executive officer of RealtyTrac. “We expect REO activity to spike in the coming months as foreclosure delays and moratoriums implemented by various state laws come to an end.”
Ten states represent 77% of foreclosure filings, according to the report. Foreclosures are forecast to rise through the remainder of the year by Housing Predictor as a result of the financial crisis and the tight money supply. Nevada continued to document the nation's highest foreclosure rate, with one in every 64 housing units receiving a foreclosure filing during the month.