California, Nevada residents hit by foreclosures

05.14.09
By Nicholas Storie

Despite some signs and commentary that the economic slowdown may be moderating, homeowners across the country were reeling again in April from record foreclosure filings.

The latest RealtyTrac report on foreclosures around the country shows that default notices, auction sale notices and bank repossessions are up again from March's figures and have increased 32 percent since the same time last year.

According to RealtyTrac, foreclosure filings were reported on 342,000 U.S. properties last month which translates into one in every 374 housing units. This figure sets a new monthly high for the company which has been reporting on foreclosure filings since 2005.

"Total foreclosure activity in April ended up slightly above the previous month, once again hitting a record-high level," said James J. Saccacio, chief executive officer of RealtyTrac.

"Much of this activity is at the initial stages of foreclosure….This suggests that many lenders and servicers are beginning foreclosure proceedings on delinquent loans that had been delayed by legislative and industry moratoria," he added.

States that have been at the heart of the residential housing market meltdown continue to top the list of highest foreclosure rates.

Homeowners in Nevada, Florida and California are most likely to be struggling with mortgage loan payments. Nevada, the state posting the nation's highest foreclosure rate last month, reported one in every 68 housing units were engaged in the foreclosure process.

Ten states, including Nevada, California, Florida, Arizona, Utah and Georgia account for 75 percent of the nation's foreclosure activity. In California alone, over 96,000 properties were in foreclosure.

Late payments on home loans, much like on credit card debt and other bills, will have an eventual impact on your credit score. A clean credit report and solid credit score are keys to obtaining better rates on a number of financial products like mortgages or insurance premiums.

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Foreclosure filings likely to cause more consumer stress