Home foreclosure activity increased dramatically in 2008 compared to the previous year, according to RealtyTrac's 2008 U.S. Foreclosure Market Report.
There were 3,157,806 foreclosure filings - default notices, auction sale notices and bank repossessions in 2008, marking an 81% increase from 2007. According to RealtyTrac, 1.84% of all U.S. housing units received at least one foreclosure filing during the year, an increase from 1.03% in 2007.
Recent laws enacted by the State of California, which require lenders to provide a written 30-day notice of the intent to initiate a foreclosure, has done little to stem foreclosures as California posted the highest state total foreclosures in the U.S. with 523,624 filings in 2008. According to the report, foreclosures activity increased 110% from the prior year.
"Clearly the foreclosure prevention programs implemented to-date have not had any real success in slowing down this foreclosure tsunami," said James J. Saccacio, chief executive officer of RealtyTrac.
Florida posted the second highest state total foreclosures in 2008 as 385,309 Florida households received a foreclosure filing, a 113% increase from the prior year.
Arizona total state foreclosures ranked third overall with 116,911 properties receiving a filing in 2008, a 203% increase from 2007.
Nevada led the pack with the highest foreclosure rate for the year as 7% of homes, or one in every 14, receiving foreclosure notices. This marks a 126% increase over the previous year.
Foreclosure activity for the month of December were also released. There were 303,410 fillings in the month, a 17% month-over-month rise and a 41% annualized increase.
The RealtyTrac Monthly U.S. Foreclosure Market Report compiles the total amount of properties with at least one foreclosure filing reported during the month. The RealtyTrac report includes properties filed in all three stages of foreclosure; default, auction and bank.
By Steve Stecyk and edited by Nancy Girgis
©CEP News Ltd. 2009