Foreclosure Activity Down Four Percent Last Month, Up Twelve Percent from Last Year

Florida mortgage loan defaults have gone down in a month - but are still at high levels compared to one years ago at this time.

RealtyTrac released its February 2007 U.S. Foreclosure Market Report, which shows a total of 130,786 foreclosure filings - default notices, auction sale notices and bank repossessions - were reported during the month, down 4% from a revised January total but still up 12% from February 2006.

The report also shows a national foreclosure rate of one foreclosure filing for every 884 U.S. households during the month.

“Based on our numbers for the first two months of 2007, foreclosure activity is running at a rate that would project to a 33 percent increase over 2006,” said James J. Saccacio, chief executive officer of RealtyTrac. “It appears that as subprime and FHA loans default at higher than anticipated rates, and lenders tighten their underwriting standards, we’re going to continue to see a spike in the number of homeowners facing foreclosure.”

Nevada, Colorado, Florida post top foreclosure rates
Nevada registered the nation’s highest state foreclosure rate for the second month in a row thanks to a 24% increase in foreclosure activity from the previous month. The state reported 3,124 foreclosure filings during the month, up 77% from February 2006 and a foreclosure rate of one foreclosure filing for every 278 households - more than three times the national average.

Florida mortgage foreclosure activity spiked more than 63% from the previous month, giving it the nation’s third highest state foreclosure rate in February - one foreclosure filing for every 382 households.

The state reported 19,144 foreclosure filings during the month, the most of any state. This may become a troubling trend in the area until bad credit Florida home loan standard are tightened and/or borrowers educated about interest rate spikes in this products.

SOURCE: RISMedia