Foreclosure rate falls in the US
Foreclosure filings in the United States tumbled in May to the lowest in almost four years as banks weighed down by an increasing inventory of seized homes delayed processing defaults, according to Realty Trac.
A total of 214,927 properties received default, auction or repossession notices in May, the fewest since November 2007, the Irvine, California-based data company says.
The filings were down 33% from a year earlier and 2% from April.
It meant one in 605 households in the US got a notice.
Foreclosure filings have fallen for eight straight months on a year-over-year basis as banks rework their documentation procedures following claims they had improperly repossessed homes.
Bloomberg has reported that weak demand from buyers was making it difficult for lenders to sell the properties that they already have on their books.
"Foreclosure processing delays continue to mask the true face of the foreclosure situation,” says James J. Saccacio, RealtyTrac’s chief executive officer.
Even at a significantly lower level than a year ago, the new supply of foreclosures exceeds the amount being sold each month, he says.
Unemployment and falling home values are limiting property sales and have pushed about 28% of mortgage holders underwater on their loans, meaning they owe more than the home is worth, according to the US website Zillow Inc.
The U.S. jobless rate rose to 9.1% in May from 9% the previous month, the US Labor Department reported June 3.
