U.S. foreclosures rise 15% in first half of 2009

A recent report indicates the foreclosure crisis affected more than 1.5 million homes in the first six months of the year in the United States.

The number of U.S. households on the verge of losing their homesclimbed by nearly 15 per cent in the first half of the year, as more people lost their jobs and were unable to pay their monthly mortgage bills. RealtyTrac released its Midyear 2009 U.S. Foreclosure Market Report, that shows a total of 1,905,723 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 1,528,364 U.S. properties in the first six months of 2009. That is a 9 per cent increase in total properties over the previous six months, and a nearly 15 per cent increase in total properties from the first six months of 2008. Furthermore, 1.19 per cent of all U.S. housing units (one in 84) received at least one foreclosure filing in the first half of the year. “In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels,” noted James J. Saccacio, chief executive officer of RealtyTrac. “Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes’ are now worth represent a potentially significant future risk. Stemming the tide of foreclosures is a critical component to stabilizing the housing market, so it is imperative that the lending industry and the government work in tandem to find new approaches to address this issue.”