The Salt Lake Tribune Staff And News Services
The number of homeowners on the brink of losing their homes in Utah and the rest of the nation dipped in October from the previous month as foreclosure-prevention programs helped more borrowers.
But foreclosure filings in Utah are still up nearly 33 percent year-over-year, which is higher than the national increase of 19 percent, RealtyTrac Inc. said Thursday. The group that tracks filings nationwide said continued job losses aggravate the foreclosure problem.
The number of homeowners on the brink of losing their homes in Utah and the rest of the nation dipped in October from the previous month as foreclosure-prevention programs helped more borrowers.
But foreclosure filings in Utah are still up nearly 33 percent year-over-year, which is higher than the national increase of 19 percent, RealtyTrac Inc. said Thursday. The group that tracks filings nationwide said continued job losses aggravate the foreclosure problem.
In Utah, more than 2,400 households, or one in every 385 homes, received a foreclosure-related notice in October, such as a notice of default or trustee's sale. Nationally, more than 332,000 households received them, which works out to the same ratio.
Banks repossessed more than 77,000 homes nationwide last month, including 761 in Utah, the report said.
New state programs such as one launched in Nevada in July, which requires mediation before banks can seize a property, have helped ease foreclosure activity, said Rick Sharga, senior vice president at RealtyTrac.
Also, anecdotally lenders are delaying foreclosure as they evaluate which borrowers might qualify for a federal loan modification program, he said. "That's the reason there's been a buildup of homes that are seriously delinquent but not foreclosed."
Despite Nevada's legislative efforts to slow foreclosures, the state still checked in with the nation's highest foreclosure rate for the 34th month in a row, Advertisement followed by California, Florida, Arizona and Idaho. Rounding out the top 10 were Illinois, Michigan, Georgia, Maryland and Utah, which still saw its month-over-month rate improve 34.7 percent, compared with 3 percent nationally. The October number marked the third straight U.S. monthly decline.
Among cities, Las Vegas had the highest rate, the report showed. One in 68 homes received a foreclosure filing in October, more than five times the national average. Seven of the top 10 metros were in California, led by Vallejo and Modesto at No. 2 and No. 3.
After three years of declines, home prices reversed course in June and have been rapidly climbing month-over-month. This will rebuild home equity and reduce the number of borrowers that owe more than their homes are worth.
Still, foreclosures remain near record highs and the mortgage industry is still struggling to manage the onslaught. The government has had to push many lenders to participate in the Obama administration's loan modification plan.
The Treasury Department said Tuesday that more than 650,000 borrowers, or 20 percent of those eligible, had signed up for temporary trial plans lasting up to five months. But since the beginning of September, only about 1,700 modifications had been made permanent. The Treasury Department expects to release updated data later this month.
Congress last week also extended and expanded a key federal tax credit for homebuyers that has been credited for boosting home sales recently.
Buyers who have owned their current homes for at least five years are eligible for tax credits of up to $6,500, while first-time homebuyers -- or anyone who hasn't owned a home in the past three years -- would still get up to $8,000. To qualify, buyers have to sign a purchase agreement by April 30, 2010, and close by June 30.
"Anything that stimulates buying activity," Sharga said, "will go a long way to mediate the foreclosure problem."
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