During the month of July, nearly 135,000 foreclosure filings occurred across the nation. Minnesota residents may know that the foreclosure activity represents bank repossessions, scheduled auctions and default notices. The number reflects a 7 percent increase from June and a 14 percent increase from July 2014, according to a recent report.
Despite the steady increase of foreclosures, there was a general decline in foreclosure activity for nearly four years prior to the increase. The increase, however, is likely due to the large number of bank repossessions that have been occurring, with July marking the most repossessions since January 2013, according to a RealtyTrac representative.
During July, lenders repossessed almost 47,000 properties, which is about a 30 percent increase from June and an 81 percent jump from July 2014, marking the highest levels since the start of 2013. Also in July, lender-owned properties were down since September 1010 when they peaked to 102,134. The report further noted that there were slightly more than 45,000 first-time foreclosure filings within the United States during July, which reflects an 8 percent decrease from June and a 9 percent decrease from July 2014. These stats mark the lowest levels since the latter part of 2005.
July's foreclosure stats represent a quarter of 203,948 foreclosures that occurred in April 2009, which is lower than the pre-crisis monthly averages of 52,279 during 2005 and 2006. An increase in REOs is a result of the bad loans during the era of the United States housing bubble, which occurred from 2004 to 2008, as reported.
There are various options available to homeowners facing a foreclosure of their home. A lawyer may be able to direct a homeowner to a solution that may stop the foreclosure process, such as a bankruptcy filing.
Source: Housing Wire, " RealtyTrac: Foreclosure filings up 7% in July", Brena Swanson, Aug. 20, 2015