US foreclosures up 4%; top 300000 for 17th month on the trot

As per the 'Foreclosure Market Report' released by RealtyTrac, an online marketplace, giving insights into foreclosures, 325,229 houses received foreclosure filings in the nation, 4 percent up from June.

Not only there has been a jump in the number of houses receiving filings, the foreclosures have exceeded 300000 for the 17th straight month. One in every 397 houses received foreclosure notice from the lenders in July.

Describing the foreclosure activity, James J. Saccacio, chief executive officer of RealtyTrac, said, “Declines in new default notices, which were down on a year-over-year basis for the sixth straight month in July, have been offset by near-record levels of bank repossessions, which increased on a year-over-year basis for the eighth straight month.”

States with high foreclosures
Among the various states in the nation that recorded high foreclosure rates, Nevada residents received maximum notices.

In the state, one in every 82 houses received auction notice, thus topping the state foreclosure list for the 43rd month in a row.

Nevada was followed by Arizona, where one in every 167 houses failed on their mortgage payment. Overall the foreclosures have decreased in the state for sixth consecutive month.

Not only there has been a jump in the number of houses receiving auction notices, the foreclosures have exceeded 300000 for the 17th straight month. One in every 397 houses received foreclosure notice from the lenders in July.

Florida witnessed third highest foreclosures. In the state one in in every 171 houses was foreclosed, closely followed by California where where one in every 200 housing units received filing.

Others among the top 10 states were Idaho, Michigan, Utah, Illinois, Georgia, and Maryland.

Foreclosure trend in metros
Among the cities with a population of 200,000 or more, Las Vegas reported highest foreclosure rate, up 9 percent compared to June.

Cape Coral-Fort Myers stood second with 21 percent increase in auction notices compared to previous month.

Modesto, Merced, Riverside-San Bernardino-Ontario, Stockton, Bakersfield, Orlando-Kissimmee, Phoenix-Mesa-Scottsdale ,and Vallejo-Fairfield, were among the 10 metros with high foreclosure rates.

High foreclosure signal HAMP failure?
With the housing market unable to recover from the crisis, experts believe Obama administration's $75 billion Home Affordable Modification Program (HAMP) has fallen short of its goal.

Though the program touts that it offers borrowers' opportunities to modify or refinance their mortgage payments, it has failed to help all struggling homeowners.

Among the 1.5 million people who applied for HAMP last year, nearly 40 percent did not qualify.

The main problems reported were paperwork complications, lack of staff, failure on part of homeowners to properly fill the application, thus leading to incomplete paperwork etc.

Also, the report released by Fitch Ratings in June states that 65 to 75 percent loans modified under the program will default within a year, meaning HAMP is just hepling 25 to 35 percent homeowners.

In other words, foreclosure activity is likely to increase in nation as HAMP is postponing foreclosures rather than stopping them.