Foreclosures proceedings up 12% in May, setting stage for more home repossessions

(AP) LOS ANGELES - New foreclosure data show that lenders initiated foreclosure proceedings against more U.S. homeowners in May, setting the stage for increases in home repossessions and short sales.

Foreclosure listing service RealtyTrac Inc. said Thursday that the number of homes receiving default or scheduled-home-auction notices rose 12 percent from April and increased 16 percent versus May last year.

U.S. mortgage rates fall to record lows again
Sales of foreclosure homes jumps
Average home prices hit mid-2002 levels

The data reflects how banks and mortgage servicers have been stepping up efforts this year to address unpaid mortgages.

Some 33 states saw annual increases in homes entering the foreclosure process last month, with New Jersey, Pennsylvania and Florida posting the biggest gains.

Even so, home repossessions have been declining overall of late, with May being an exception.

The number of properties taken back by banks in May rose 7 percent from April.

[bigmanfrommaine]

These foreclosures and short sales are a painful but necessary part of recovering from the insanity of the housing bubble. The answer is to put smart regulation into the banking process to prevent this kind of feeding frenzy in the future.

[Martha12345]

Want to bet that none of these foreclosures are homes of SEUI union members ?

[democracy8]

Want to bet that your post is the most ignorant one of the day?

[askagain]

Waiting in line at the bank, I noticed a sign listing a 15 year mortgage at 3.35% interest. When I purchased my first home, the interest rate was 11% with a downpayment of 20%. My second home had an interest rate of 9% and my third home had an interest rate of 7.5% interest. If people think times are hard now, I remember a year when inflation hit 21% in the late 1970s or early 1980s. That year, my salary increase was 2%. Talk about having a feeling of going backwards.