A growing number of American homeowners across the country are getting foreclosure notices, according to new data released this week by RealtyTrac.
U.S. foreclosure filings surged 90 percent in May from a year earlier as more homeowners fell behind on their monthly mortgage payments, reported RealtyTrac. There were 176,137 foreclosure filings in May, up 19 percent from April.
James J. Saccacio, chief executive officer of RealtyTrac, said a jump in foreclosures at a time of year that traditionally is the busiest for home sales means the slide in prices probably isn't over.
“Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year,” said Saccacio. “Certainly not every community nationwide is seeing an increase in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas.”
Meanwhile, the Mortgage Bankers Association, in its quarterly snapshot of the mortgage market released today, reported that the percentage of payments that were 30 or more days past due for one-to-four unit residential properties was 4.84 percent, down 11 basis points from the previous quarter, but up 43 basis points from the first quarter of 2006. The biggest increases were for delinquency rates on subprime loans, up 227 basis points from a year ago.
Late payments and new foreclosures on adjustable-rate home mortgages made to people with spotty credit histories spiked to all-time highs in the first three months of this year, the MBA said. Subprime loans entering foreclosure rose to a five-year high of 2.43 percent, up from 2 percent in the prior quarter, and prime loans rose to 0.25 percent, the highest ever, from 0.24 percent.
Top 10 Foreclosure Total
Ranked by the number of foreclosure filings, California topped the list, with 39,659 in May, and Florida was number two, with 21,704, according to RealtyTrac’s report. Ohio was number three for the third consecutive month, with 13,214 filings, followed by Texas with 9,653 foreclosure filings. Michigan took fifth place, reporting with 9,461 filings, while Georgia came in sixth with 8,294 filings. The Top 10 was rounded out by seventh place Illinois with 6,824 filings, Colorado with 6,321, Arizona with 5,918 and Nevada with 5,235 foreclosure filings.
MBA’s reported pinpointed California, Florida, Nevada, Arizona, Ohio, Michigan and Indiana as trouble spots for delinquencies and foreclosures. “Those states have special circumstances that do not reflect what is happening in the rest of the country,” said Doug Duncan, the association’s chief economist, in a statement.
Top 10 Foreclosure Rate
RealtyTrac’s report said six of the Top 10 metro areas with highest foreclosure rates were in California. Here are the metro areas with the highest rate of foreclosure filings:
1. Stockton, Calif. (1 in 88 households)
2. Merced, Calif. (1 in 100 households)
3. Modesto, Calif. (1 in 118 households)
4. Las Vegas, Nev. (1 in 127 households)
5. Riverside-San Bernardino, Calif. (1 in 145 households)
6. Vallejo-Fairfield, Calif. (1 in 147 households)
7. Sacramento, Calif. (1 in 178 households)
8. Denver, Colo. (1 in 188 households)
9. Detroit, Mich. (1 in 190 households)
10. Miami, Fla. (1 in 194 households)
View a complete list of foreclosure statistics by state.