Foreclosure Filings Fall In July

The rate of foreclosure filings, including notices of delinquency and auction notices, fell nationwide during the first six months of 2010.

Part of the reason for the decrease in the rate of foreclosure filings is that banks are more willing to modify mortgages in danger of default, and also are more willing to accept a short sale from homeowners, which allows them to sell their homes for less than they owe.

At the same time, bank repossessions increased, showing a 5% increase during April, May and June, due to the fact that banks have been finalizing repossessions in greater number, but there are still many homes in limbo, waiting to be processed through the system.

The massive number of properties currently under foreclosure notice may undermine the small advances made in housing stability.

States With Worst Numbers

  • The same states remain the hardest hit in the foreclosure crisis. Nevada leads the nation, with one in 17 homes filing for foreclosure.
  • In California, foreclosure filings came to over 340,000, the highest total for any state.
  • In Arizona, one in 30 homes was under foreclosure.
  • In April, May and June there were more than 45,000 repossessions in California.
  • While Nevada had nearly 11,000 repossessions, it represented about twice the rate as California.
  • Florida had one in every 32 households file for foreclosure.