Foreclosures Surge In June

July 15th, 2008

Foreclosures surged forward by 53% in June in comparison to what it was in the previous year. It had decreased by 3% from May. The apprehension is that foreclosures will further increase according to RealtyTrac findings.

On an annual basis foreclosure postings noted a total of 252,363 in 39 states during June. The highest numbers were recorded in Nevada, California, Arizona as well as Florida. It calculated to a foreclosure rate of 1:501 across the country – the term foreclosure is inclusive of all the stages of the judicial process.

James J. Saccacio, CEO of RealtyTrac said, “June was the second straight month with more than a quarter million properties nationwide receiving foreclosure filings. He further added that this not the peak of the foreclosure cycle.

After the dip in February there has been another dip from May. It was not accidental but nevertheless it does not indicate a change in the foreclosure climate said another spokesperson of ReatlyTrac, Rick Sharga. “We are coming off the highest month we ever had in terms of foreclosure activity so some sort of fall-off was inevitable,” he added.

At this point it will be premature to comment whether governmental intervention is having some impact in slowing down the speed of foreclosures. The question is whether these measures will delay and postpone the inevitable or prevent it has yet to be assessed.

According to the analysis of RealtyTrac the foreclosure movement will reach its peak sometime towards the end of this year, 2008. By this time all the sub-prime mortgages in the risk zone will have been dealt with – one way or the other.

The real estate market is falling thanks to the rise in the foreclosure numbers. Across the country the price fell by 3.2% from April in May. The drop is by 20.1% from what it was a year ago. This is according to the findings of Integrated Asset Services that engages in valuation of single-family houses. Foreclosures add to the number of houses sitting on the shop shelves asking to be sold. With supply outstripping demand the prices are fated to fall. The entire locality is adversely affected. During the housing boom already sufficient number of houses have been built to meet the demand for another 10.8 months.

Among the top offending states are Nevada, California, Michigan, Ohio, Colorado, Utah, Georgia and Indiana. Foreclosure preventive measures seem to have had little positive effect. Foreclosures are having the last say.