Post image for 2010 saw record 1 million foreclosures

2010 saw record 1 million foreclosures

by Jorge Hernandez on January 13, 2011

A report released Thursday by RealtyTrac found that banks repossessed an all-time record of 1.05 million homes in 2010, though the rate had slowed by the end of the year as it became apparent that many of the documents may not have been prepared correctly.

According to USA Today, the year-to-year foreclosure rate had dropped by 26 percent in December 2010, the biggest drop in five years as well as the lowest total filings since June 2008.

However, the overall number of foreclosure filings for the year was at a record 2.9 million, up by nearly 2 percent since 2009. The news source reports that this amounts to nearly 1 in 45 homes.

According to The Atlantic, high foreclosure rates were largely due to unemployment rather than sub-prime mortgages.

Additionally, states such as Nevada, California, Florida and Arizona, which traditionally bear the brunt of housing market issues, experienced fewer foreclosures in 2010 than the year before. North Carolina, Hawaii, South Carolina and Washington saw the biggest increases, the news source reports.

RealtyTrac's figures show that nearly 250,000 filings have experienced delays due to reports released in September that tens of thousands of foreclosure filings may have cut corners regarding legal procedures. RealtyTrac CEO James Saccacio says that the backlogged foreclosures will be resumed in 2011, USA Today reports.

"Lenders have been spanked. They're spending money to make sure every 'i' is dotted and every 't' is crossed," Christopher Thornberg of Beacon Economics told the news source, assuring that the foreclosure rate would "pick back up."

Lenders forecast that there will be more foreclosures in 2011 due to 5 million borrowers who are at least two months behind on mortgages, according to the Daily Mail.

Previous post:

Next post: