RealtyTrac reports 5 percent increase in October 2008 foreclosure activity

The October 2008 U.S. Foreclosure Market Report(TM) released today by RealtyTrac shows Foreclosure filings like default notices, auction sale notices and bank repossessions were reported on 279,561 U.S. properties during October, an increase by 5 percent from September and a 25 percent increase from October 2007. The report also shows one in every 452 U.S. housing units received a foreclosure filing in October.

“We’ve seen sharp declines in new foreclosure filings after legislation mandating delays to the foreclosure process was signed into law in several states — most notably in California, where overall foreclosure activity was down by double-digit percentage points for the second straight month in October, and where default filings were 44 percent below October 2007 levels,” said James J. Saccacio, chief executive officer of RealtyTrac. “Despite this, October marks the 34th consecutive month where U.S. foreclosure activity has increased compared to the prior year.”

He added “While the intention behind this legislation — to prevent more foreclosures — is admirable, without a more integrated approach that includes significant loan modifications, the net effect may be merely delaying inevitable foreclosures. And in the meantime, the apparent slowing of foreclosure activity understates the severity of the foreclosure problem in these states.”

The top 10 states with high foreclosure rates ranking were Nevada, Arizona, Florida, California, Colorado, Georgia, Michigan, New Jersey, Illinois and Ohio.