RealtyTrac reports that in July there were more than 325,000 foreclosure filings — including notices of default, auctions notices and bank repossessions — up 3.6% from the month before but down 9.7% from 12 months earlier. That is the 17th month in a row total filings exceeded 300,000, said RealtyTrac’s CEO, James Saccacio. “Declines in new default notices, which were down on a year-over-year basis for the sixth straight month in July,” he said, “have been offset by near-record levels of bank repossessions, which increased on a year-over-year basis for the eighth straight month.” A near record number of people lost their homes to mortgage payment problems in July.
Lender repossessions amounted to 92,858 homes, the second highest monthly total ever behind the 93,777 recorded this May. Banks have stepped up repossessions this year to clear out the backlog of bad loans. July makes the eighth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. Meanwhile, homeowners who are falling behind on their payments are being allowed to stay in their homes longer because lenders are reluctant to add to the glut of foreclosed homes on the market. The number of properties receiving an initial default notice — the first step in the foreclosure process — rose 1% last month from June, but fell 28% versus July last year, RealtyTrac said.