Foreclosure Filings Increase at Slower Pace

Irvine, CA, Sept. 12, 2008--August foreclosure filings increased 27 percent compared to the same month a year ago, a much slower pace than in previous months, according to RealtyTrac Inc.

Nationwide, 303,800 homes received at least one foreclosure-related notice in August, up 12 percent from July. That means one in every 416 U.S. households received a foreclosure filing last month.

August's increase, however, was smaller than the two prior months. June and July both had year-over year increases in foreclosure filings of 50 percent or more. However, the total number of foreclosure filings is still the highest since RealtyTrac began issuing its report in January 2005.

RealtyTrac monitors default notices, auction sale notices and bank repossessions. More than 90,893 properties were repossessed by lenders nationwide last month -- up more than half from 43,141 in August 2007.

The top three states in foreclosure rates were Nevada, California and Arizona.

Many homeowners can't find buyers or owe more than their home is worth and can't refinance into an affordable loan.

Banks and mortgage investors are also holding a glut of foreclosed properties and are slashing prices to get them off the books.

James J. Saccacio, chief executive officer of RealtyTrac, said the lower percentage increase last month is due to a big spike in activity in August 2007. Last month, default activity was up 10 percent from a year ago and auction activity up 7 percent year-over-year, Saccacio said.

"The increases in default and auction activity could be slowing down partly as the result of new legislation passed in several states that is designed to give homeowners in distress more time before foreclosure proceedings are initiated," Saccacio said.