For the third time in the last five months a new record for foreclosure filings has been reached says foreclosure tracking firm RealtyTrac. July saw an increase of 7% from June of this year and, even more telling, a 35% increase from last year.
“July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity,” James J. Saccacio, RealtyTrac’s chief executive, said in a statement.
“Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions.”
RealtyTrac says notices of default, auction or repossession have reached nearly 2.3 million in the first seven months of the year. There are now more than half a million bank repossessions currently on the books. Repossessions are particularly awful because they represent properties that the bank couldn’t even sell at auction. These vacant properties lower the value of the surrounding real estate.
As unemployment rises and property values fall it makes it more difficult for people to sell their homes, which in turn increases the number of foreclosure filings.
The national unemployment rate is currently at 9.4%. I am sorry to have to tell you all of this. Here is a picture of a kitty playing XBOX.
U.S. home foreclosures set another record in July [Reuters]