Foreclosure Filings Rise Sharply in March (AP) (15-04-2008)

The percentage of homes facing foreclosure in the U.S. is still rising. The latest figure is 57% in March, as homeowners, unable to meet their obligations, leave their homes to the banks.

With the wave of adjustable-rate loans resetting cresting in May and June, more homeowners will be forced into default and foreclosure in the third and fourth quarters of this year, according to RealtyTrac Inc. of Irvine, Calif.

The number of U.S. homes receiving at least one foreclosure filing jumped 57 percent in March to 234,685, compared with 149,150 properties a year earlier. Filings include default notices, auction sale notices and bank repossessions.

The overall foreclosure rate is 5 percent higher than in February, which saw an unexpected month-to-month decline over January. March marked the 27th consecutive month of year-over-year increases in national foreclosure filings. Banks repossessed 51,393 properties nationwide, many of them without a public foreclosure auction.

Declining home prices and stricter lending requirements have made the foreclosure environment even tougher. Homeowners stuck in unmanageable mortgages aren't able to sell their homes or refinance into cheaper loans before their mortgage payments reset higher.

 Source: AP