This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Foreclosure Glut Pushes Filings Into 2012

NEW YORK ( TheStreet) -- Approximately 1.7 million properties entered some stage of foreclosure during the first six months of 2011, according to RealtyTrac, a group that monitors the foreclosure market.

However, that figure is artificially depressed, thanks to persistent paperwork problems with mortgage servicers and a sluggish housing market. The numbers, RealtyTrac says, should actually be much higher.

"We estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later," James Saccacio, CEO of RealtyTrac, said. "This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number."

Foreclosure activity actually increased by 4% in June, a slight uptick that follows two consecutive months of decreases.

Year over year, the numbers show an even clearer trend.

Foreclosure filings were reported on 222,740 U.S. properties last month, a decrease of 29% from June 2010, and the ninth straight month that foreclosure activity decreased on a year-over-year basis. The steady declines led foreclosure activity for the first six months of 2011 to decrease by 25% from the previous six months and by 29% decrease from the first half of 2010.

In June, Rick Sharga, RealtyTrac's senior vice president, told MainStreet that the backlog of distressed properties will extend the housing market's recovery well into next year.

State by state, Nevada posted the nation's highest foreclosure rate during the six-month period despite continued decreases in foreclosure activity. Nearly 5% of all Nevada housing units (one in 21) received at least one foreclosure filing in the first half of 2011.

Arizona had the second highest state foreclosure rate in the first half of the year, with 2.82% of its housing units (one in 36) receiving a foreclosure filing, and California had the third rate, with 1.96% of its housing units (one in 51) receiving a foreclosure filing during those six months.

Other states with high foreclosure rates include Utah (1.65%), Georgia (1.50%), Idaho (1.49%), Michigan (1.34%), Florida (1.28%), Colorado (1.19%), and Illinois (1.15%).

--For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,461.16 +73.95 0.43%
S&P 500 2,032.74 +3.19 0.16%
NASDAQ 4,708.4770 +26.98 0.58%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs