Foreclosures up 36 percent month-over-month
According to the real estate research firm RealtyTrac, new foreclosures rose 36 percent in August compared with July to 243,947 filings, including default notices, auction sale notices and bank repossessions. The rate of foreclosures was at one foreclosure notice for every 510 households.
Nevada had the highest rate of foreclosures at 6,197, up 21 percent from July. That number represents one foreclosure notice for every 165 households. Six California cities had among the 10 highest rates of foreclosure filings in August, led by Modesto at one for every 79 households.
But California still had the most foreclosures overall, at 57,875, a 48 percent surge from last month. The foreclosure rate in California was one notice for every 224 households.
Foreclosures in Florida were up 77 percent to 33,932, or a rate of one notice for every 243 households.
"The jump in foreclosure filings [in August] might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now," said James Saccacio, CEO of RealtyTrac.
"Another significant factor in the increased level of foreclosure activity is that the number of REO filings (bank repossessions) is increasing dramatically, which means that a greater percentage of homes entering foreclosure are going back to the banks."