U.S. Home Foreclosures Rise By 60pct In February At Annual Rate

Thu, 13 Mar 2008 15:16:09 +0000
Mayur Pahilajani - AHN News Writer

New York, NY (AHN) - The number of foreclosure filings in the U.S. soared by 60 percent in February compared to the filings over the period of 12 months.

However, the filings recorded over last month decreased slightly compared to January, according to a report released on Thursday.

For the month of February this year, the home foreclosure activity dropped by 4 percent due to a decline in the number of default notices, auction sales notices and bank repossessions compared to January.

More than 223,000 properties were undergoing the process of default, which is equal to 1 in every 557 households in the U.S., according to the Irvine, Calif.-based RealtyTrac Inc.

The online marketer of foreclosure properties reported that 223,651 homes were struck with foreclosure filings last month.

"With declining prices, there is a pervasive problem of not being able to refinance or sell," Susan Wachter, professor of real estate at the University of Pennsylvania's Wharton School in Philadelphia, told Bloomberg. "I'm very concerned."

Nevada registered 1 in 165 households receiving a foreclosure notice during the month followed by California with 1 in 242 households and Florida 1 in 254 households.

"I don't see evidence that any of the interventions we've been implementing are having any effect," Jared Bernstein, a senior economist at the Economic Policy Institute, told CNNMoney.

The report "doesn't show that measures have failed but it's pretty clear that nothing we've undertaken is slowing foreclosures."

Meanwhile, the foreclosure activity continued to increase in the state of Nevada, California and Florida with highest rates.

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