Magazine article American Banker

Trouble Ahead: Foreclosure Starts on the Rise Again

Magazine article American Banker

Trouble Ahead: Foreclosure Starts on the Rise Again

Article excerpt

Byline: Evan Nemeroff

Foreclosure filings in May exceeded the 200,000 mark for the first time in three months as more servicers moved to take possession of real estate collateralized by delinquent home mortgages, according to new figures compiled by RealtyTrac.

In May 205,990 foreclosure filings were recorded nationwide, a 9% increase from the prior month. However, compared to a year ago, filings fell 4%.

One in every 639 housing units had some type of default notice, scheduled auction or bank repossession during the month, RealtyTrac reported.

The resurgence in foreclosure filings was sparked by an uptick in default notices or scheduled auctions. In total, 109,000 new actions occurred across the nation in May. This is a 12% month-over-month rise and is 16% higher than the same period last year, marking the first annual increase in foreclosure starts since January 2010.

Year-over-year, foreclosure starts rose in 33 out of 50 states a 17 of which follow the judicial foreclosure process.

Some of the biggest annual increases in foreclosure starts included the judicial states of New Jersey (up 118%), Pennsylvania (97%), Florida (83%), Massachusetts (60%), New York (59%) and South Carolina (43%), while the largest gains for nonjudicial states were seen in Tennessee (165%), Texas (51%), Missouri (35%), Georgia (30%) and Michigan (24%). …

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