Foreclosures ebb, but many Americans still losing homes: study
WASHINGTON (AFP) — The high number of US home foreclosures ebbed last month, but banks and lenders still filed 223,538 repossession notices against financially stretched Americans, industry data showed Thursday.
RealtyTrac, a California-based firm which tracks foreclosures across the country, said in a monthly survey that the rate of US home repossession notices fell eight percent in September from the prior month.
However, RealtyTrac said the level of September foreclosure notices marked a sharp 99 percent gain compared with the same period last year.
"It's too early to tell if September's numbers represent a one-month lull or if they could signify that more buyers and investors are getting back in the market and snatching up discounted foreclosure properties, thereby providing a release valve for distressed homeowners and overwhelmed lenders," RealtyTrac's chief executive officer James Saccacio said.
Hundreds of thousands of Americans have had their properties repossessed by banks and mortgage lenders this year amid a widespread housing downturn which has also forced many home lenders out of business.
Falling home values and higher interest rates have caused problems for many Americans, especially those on low incomes, who took out mortgages on homes during the multi-year property boom which ran out of steam in early 2006.
Economists say the housing market is unlikely to stabilize until next year.
The RealtyTrac survey found that one in every 557 homes was at risk of being repossessed last month.
The three states facing the highest levels of home foreclosures are Nevada, Florida and California.
The gambling hub of Las Vegas in Nevada and Miami on Florida's east coast both witnessed a building frenzy during the boom years which was partly fueled by speculators buying homes in the aim of "flipping" them on for a quick profit.
Treasury Secretary Henry Paulson announced Wednesday that 11 large mortgage lenders had forged an alliance and agreed to mount an "outreach" program in a bid to help families stave off the threat of foreclosure.
