Foreclosure Filings Continue to Surge

Irvine, CA, April 29, 2008--The number of U.S. homes in the foreclosure process more than doubled in the first quarter from a year earlier, according to research firm RealtyTrac Inc.

Nevada, Florida and California were among the hardest hit states.

Nationally, 649,917 homes received at least one foreclosure-related filing through March, up 112 percent from 306,722 during the same period last year, RealtyTrac said.

It was also an increase of 23 percent from the fourth quarter of last year.

One in every 194 households received a foreclosure filing during the quarter. Filings increased in all but four states.

It was also the seventh consecutive quarter of rising foreclosure activity, RealtyTrac said.

What would normally stall the foreclosure situation in a normal market is people starting to buy properties again, said Rick Sharga, RealtyTrac's vice president of marketing.

However, the tight credit market is slowing the process, he said.

The continuing surge in foreclosure filings also calls into question if federal programs to help distressed homeowners are working.

Almost 157,000 properties were repossessed by lenders nationwide during the quarter.

While the increase of foreclosed properties on the market has contributed to weaking housing values, lenders have yet to implement heavy discounts on repossessed homes, Sharga said.

Nevada posted the worst foreclosure, with one in every 54 households receiving a foreclosure-related notice.

California had the most properties facing foreclosure at 169,831, an increase of 213 percent from a year earlier.

Arizona had the third-highest foreclosure rate at one in every 95 households and Florida had 87,893 homes reporting at least one foreclosure filing, a 178 percent jump from the first quarter of last year.