Foreclosures Continue To Rise in First Six Months

Irvine, CA, July 29, 2010--Foreclosures rose in 75% of large U.S. metro areas in this year's first half, likely ruling out sustained home price gains until 2013, RealtyTrac said in its midyear 2010 metropolitan foreclosure report.

Nine of the 10 areas hardest hit by the foreclosure tidal wave improved from the first half of 2009, RealtyTrac said

Cities with the 20 highest foreclosure rates were all in Florida, California, Nevada and Arizona.

Unemployment was the main culprit driving foreclosure actions on more than 1.6 million properties, the company said.

"If unemployment remains persistently high and foreclosure prevention efforts only delay the inevitable, then we could continue to see increased foreclosure activity and a corresponding weakness in home prices in many metro areas," RealtyTrac chief executive James J. Saccacio said in a press release.

Foreclosure actions -- which include notice of default, scheduled auction and repossession -- in the first half rose in 154 of the 206 metro areas with populations 200,000 or more.

"We're not going to see real price appreciation probably until 2013," said RealtyTrac senior vice president Rick Sharga.

More than 3 million households are seen getting at least one foreclosure notice this year, and this record will be surpassed slightly at the peak of next year, RealtryTrac expects.