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US foreclosures slide 9% in April
by Jaspreet Virk - May 13, 2010 - comments
Nevada reported the highest number of foreclosures for the 40th consecutive month. In the state, one in every 69 houses received a foreclosure notice in April.
In what can be termed as some respite for the housing market in the nation, foreclosure crisis is loosening its grip on the nation.
As per the U.S. Foreclosure Market Report released by California-based RealtyTrac, a total of 333,837 properties in the nation received auction notice, meaning that one out of every 387 houses received a foreclosure filing.
This is 9 percent less than the homes foreclosed last month, and 2 percent less than April 2009.
In a statement, James J. Saccacio, chief executive officer of RealtyTrac, stated, “April was the first month in the history of our report with an annual decrease in U.S. foreclosure activity.”
Analyzing foreclosures in various states
Nevada reported the highest number of foreclosures for the 40th consecutive month. In the state, one in every 69 houses received a foreclosure notice in April.
Bank repossessions activity has picked pace in the state and is responsible for the rising foreclosures in Nevada.
Next highest foreclosure rate was reported by Arizona, where one in every 169 houses received a foreclosure filing.
Among the cities, Las Vegas reported the highest number of foreclosures, as one in every 60 households received mortgage default notices.
Though the foreclosure activity has decreased around 15 percent in the state, from March, Arizona has moved from third to second place due to drastic fall in foreclosures in California.
Florida reported third highest foreclosures with one in every 182 houses defaulting. Following Florida was California, where one in every 192 houses received a filing.
States like Idaho, Michigan, Illinois, Georgia and Colorado rounded out the 10 highest foreclosure rates.
California cities receive highest filings
Among the cities, Las Vegas reported the highest number of foreclosures, as one in every 60 households received mortgage default notices.
Most of the metros in California featured among cities with highest foreclosure rate. These included Modesto, which received second highest foreclosure filings, Merced (No.3), Stockton (No. 5), Riverside-San Bernardino-Ontario (No.6), Vallejo-Fairfield (No. 8), and Bakersfield No.9.
Cape Coral-Fort Myers in Florida reported the fourth highest filing, and Phoenix-Mesa-Scottsdale posted 10 highest foreclosure rates.
Foreclosures not nearing end
Though the foreclosure rate has decreased in the nation, it is still very high and will not near an end for quite some time.
Expressing the same sentiment, Saccacio added that foreclosure activity is “still at a very high level that will not drop off in the near future.”
Further, Obama administration’s Home Affordable Modification Program (HAMP) has made little progress in combating the foreclosure crisis.
Though the aim of the program is to help 3 to 4 million financially-struggling homeowners modify their loans, HAMP has so far modified 230,000 mortgage loans, according to the report released by Neil Barofsky, special inspector general for the Troubled Asset Relief Program in April.
The numbers of homes repossessed in the nation were 92,432, which is an all time high. If the repossessions continue at this pace, it is expected that around 1.1 million homes will be lost this year.