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Foreclosures Spike in March

April 17th, 2009 12:01 PM

According to data from RealtyTrac released today, foreclosure filings jumped dramatically in March despite industry and government efforts to keep people in their homes. Nationally, there were 341,180 filings, up +17% from February and up +46% from the year-ago period, marking the highest monthly total since RealtyTrac began the series in 2005. The data covers 90% of U.S. households. The spike was likely caused by the expiration of foreclosure moratoriums that had been implemented earlier, according to RealtyTrac. Looking at quarterly data, foreclosure filings were up +9% in the first quarter versus the fourth quarter of 2008, and up +24% since the first quarter of 2008. Nevada and Arizona led the way in filings. This may also represent a new wave of foreclosures. The first wave was attributed to subprime borrowers taking on loans they had no chance of repaying. This wave may be mostly driven by job losses, and with continued job losses and persistent unemployment, may indicate that the wave of foreclosures may continue for some time to come. Few lenders are implementing the Obama administration's foreclosure prevention program, where lenders are paid to reduce borrower payments to affordable levels. At the current rate, it could be months before the Administration’s goals of helping up to 4 million homeowners under the program are met.

Posted by Joe Parker on April 17th, 2009 12:01 PMPost a Comment (0)