Home Foreclosures Set Third Record in Five Months
July’s foreclosure filings rose 32 percent from the previous year and 6.7 percent from June.
About 360,150 properties received a default or auction notice or were seized last month, according to data seller RealtyTrac, reported Bloomberg News. One in 355 households got a filing, which was the highest monthly rate in RealtyTrac records dating to January 2005, the company said in a statement.
“There are a slew of factors showing fundamental weakness on the demand side: tighter underwriting, job loss, investors who’ve been badly burned,” Stuart Gabriel, director of the UCLA Ziman Center for Real Estate in Los Angeles told Bloomberg. “We have not seen the bottom of the housing market.”
Nevada had the highest foreclosure rate for the 31st consecutive month, and California had the second-highest filing rate with Arizona coming in third, according to RealtyTrac.
The jump in foreclosures comes as the Obama administration attempts to help borrowers through its Making Home Affordable program. “Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions,” said James J. Saccacio, chief executive of RealtyTrac, according to the Washington Post.
Less than 10 percent of delinquent borrowers eligible for the Obama administration’s foreclosure prevention program have received help so far, according to Treasury Department estimates released last week, reported the Post.
The administration has said that it aims to help 500,000 borrowers by Nov. 1 and up to 4 million before the program expires in 2012.
A recent series of reports by KCET’s “So Cal Connected” has explored the on-the-ground impact of the foreclosure crisis in Southern California. Watch one report that examined why an area known as “the affordable Orange County,” was particularly hard-hit.