Foreclosure Rates Surge, Biggest Increase In 5 Years

A record number of US homes were foreclosed on in the first three months of 2010, an indication that banks are beginning to wade through the backlog of troubled home loans at a faster rate, The Associated Press has reported.

On Thursday, RealtyTrac Inc. said that the number of US homes taken over by banks went up 35% in the first quarter from 2009. Moreover, households facing foreclosure increased 16% in the same period and 7% from the last three months of last year.

More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter dating back to at least January of 2005, when RealtyTrac started reporting the data.

“We’re, right now, on pace to see more than 1 million bank repossessions this year,” said RealtyTrac’s Senior Vice President Rick Sharga. (more)