Bloomberg tells us that foreclosure notices increased more than 100% in August from the year prior level, rising from 1 108,716 to 42,144.
These figures greatly exceed the number of homes sold at foreclosure auction. RealtyTrac, the source of the data, counts every court filing in the foreclosure process as a “foreclosure,” which results both in multiple counting (states require several notices in the process and some properties have more than one mortgage on them) and inclusion of houses that are not foreclosed upon (homes in which the loans are modified or the owners ultimately sell the house themselves are nevertheless included). An indicative data point: one source estimated that more than half the foreclosure sales scheduled in Los Angeles for the first quarter 2007 were cancelled or delayed
Nevertheless, the RealtyTrac data has been collected on the same basis and the trend certainly isn’t pretty. From Bloomberg:
“This is just the beginning of a wave of new foreclosures,” Rick Sharga, executive vice president of marketing for RealtyTrac in Irvine, California, said in an interview. “There are lots of people who bought homes they could only afford at the teaser rates, and now have very few options.”….
U.S. banks reported owning residential property valued at $4.24 billion in the second quarter, typically houses and condominiums seized in foreclosures, according to the Federal Deposit Insurance Corp. That’s up from $2.29 billion a year earlier.