Real Estate data firm RealtyTrac reported this morning that foreclosures fell by 4% in May. Last month banks seized a total of over 66,000 homes, a drop of 29% since last year. However, one of the company’s executives warns that processing delays may be leaving artificially lower statistics. Rick Sharda said of the May survey, “There’s about 4 million seriously delinquent borrowers out there, many of whom would already be in foreclosure except for processing delays.”
Even with the lower numbers last month, an estimated 1 in every 600 homes will be seized by banks for foreclosure or default issues. Nevada remained the state hardest hit by falling home prices and a decimated residential real estate market, reporting the highest rate of foreclosures last month. One in every 100 homes in Nevada filed for foreclosure last month, and default notices in the state rose by 8%.
Arizona, California, and Michigan were the three other states that reported the highest foreclosure rates in May, according to the RealtyTrac survey.
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