Foreclosures Climb 81% in 2008, Says RealtyTrac Report

By: Steve Stecyk and edited by Nancy Girgis

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.

Illinois sheriff to resume foreclosure evictions

From Susan Roesgen
CNN

CHICAGO, Illinois –  An Illinois sheriff said Thursday he’ll soon resume evictions at foreclosed properties after reaching a deal that he says will keep “innocent tenants” from being victimized.

Sheriff Thomas J. Dart had suspended evictions last week in Cook County, which includes Chicago. But he said they will resume Monday, adding that a deal between his office and a local chancery court is “bringing sanity” to the eviction process.

“Innocent tenants [will no longer] be victimized by an uncaring, reckless system,” Dart said.

Dart said October 8 that he was suspending all foreclosure evictions to protect some renters whose landlords were behind on mortgage payments. He said some renters were paying their rent on time and weren’t receiving proper notice of the evictions.

He also said mortgage companies routinely failed to do something they were supposed to: identify a building’s occupants before asking for an eviction.

On Thursday, Dart said evictions will resume Monday with the following conditions:

The bank holding the mortgage must provide a court with a detailed description of the building and names of all occupants at the time of the initial foreclosure filing.

Before the entry of an eviction order, banks must provide a date that bank representatives last inspected the property.

Banks must prove that they informed tenants of a 120-day grace period, which state law grants to allow tenants to find new housing before moving out.

Dart also said he will hire a full-time social worker to help evictees find alternative housing and connect them with community social services.

When Dart announced the suspension last week, Cook County was on track to reach a record number of evictions, many due to mortgage foreclosures.

Foreclosures in the Chicago area have tripled in the past two years, according to the sheriff’s office. In 2006, 18,916 cases were filed in Cook County; this year’s total is expected to exceed 43,000.

The Illinois Bankers Association last week criticized Dart’s decision to suspend evictions, saying Dart “was elected to uphold the law and to fulfill the legal duties of his office, which include serving eviction notices.”