This Day On The Street
Continue to site
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

Foreclosure Backlog Begins to Break: RealtyTrac

NEW YORK ( TheStreet) -- Foreclosure activity increased 7% in August, according to RealtyTrac, a group that monitors the market.

A total of 228,098 U.S. properties entered some stage of foreclosure - default notices, scheduled auction or bank repossessions - last month.

Default notices in particular increased by 33% in August, indicating lenders may be starting to push backlogged distressed properties through the pipeline.

"It feels almost like the industry hit the reset button this month," Rick Sharga, senior vice president of Realty Trac, told sister site MainStreet. He attributes some of the spike to judicial proceedings, such as the N.J. Supreme Court decision that allowed four out of five major banks to resume foreclosure filings on distressed homes.

Otherwise, "lenders have just decided to move forth on some of these loans," he says.

While the data still illustrates a year-over-year decline in foreclosures filings, it is a marked improvement over July's news that lenders' reluctance to repossess properties due to lingering paperwork concerns and a poor housing market could keep 1 million distressed homes on the market well into 2012.

The decision to push forward is an important one since RealtyTrac has long argued that property values won't go back up until a large number of distressed properties come off the market.

"We don't know yet if this is a beginning of a trend, but there is a good chance we might see might see a return to a more realistic foreclosure numbers," Sharga says.

State-by-state, Nevada posted the highest rate of foreclosures for the 56th month in a row, with one in every 118 housing units receiving foreclosure filing last month. It was followed by perennial second-place finisher California, where one in every 226 properties entered foreclosure, and Arizona, where one in every 248 housing units did the same.

Other states with high foreclosure levels include Georgia, Idaho, Michigan, Florida, Illinois, Colorado and Utah.

Readers Also Like:

>> With Record Low Rates, Who Wants an ARM?

>> A Huge Housing Bargain -- But Not for You

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
GOOG $542.03 0.51%
TSLA $246.68 0.95%
YHOO $43.69 2.10%
AAPL $132.16 1.60%
FB $80.50 -0.06%

Markets

DOW 18,254.71 -31.03 -0.17%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs