From the June 2007 Idaho Observer:

U.S. mortgage foreclosure filings rise 90% in May

RealtyTrak reported June 12, 2007, that U.S. home foreclosure filings are up 90 percent this year compared to May, 2006.

There were 176,137 notices of default, scheduled auctions and bank repossessions nationwide last month—an increase of 19 percent over foreclosure filings recorded in April, 2007.

According to RealtyTrak, the dramatic increase in May foreclosures is led by California, with 39,659 and Florida was No. 2, with 21,704. Ohio was No. 3 for the third consecutive month. with 13,214 filings, said the report.

The National Association of Realtors has stated that the median price for a U.S. home slid 1.8 percent the first three months of 2007 as the housing slump entered its second year.

"A jump in foreclosures at a time of year that traditionally is the busiest for home sales means the slide in prices probably isn’t over," said James Saccacio, chief executive officer of RealtyTrac.

Typically, more than half of all home sales occur in the April to June period, according to Freddie Mac, the nation’s second most active mortgage buyer.

"Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year," Saccacio said in the report. That will add "to the downward pressure on home prices in many areas."

Nevada is leading the nation in per capita foreclosures with one filing for every 166 households. Colorado was second, with one filing for every 290 households, followed by California, Florida, Ohio, and Arizona.

In the report, 43 regions reported an increase in foreclosure filings from a year ago, including the District of Columbia.

Oregon was among eight states that saw a decline in foreclosure filings over those recorded last year. Oregon showed the biggest decline (50 percent) in the study, followed by New Mexico, down 39 percent, Oklahoma, declining 34 percent and Texas, down 33 percent.

The dramatic rise in numbers of Americans unable to meet mortgage obligations is causing an interesting development in the banking industry. Throughout the nation, people are noticing a sudden surge in the numbers of banks being built. Traditional banks are not set up to be real estate companies. The new banks, however, are opening their doors with a different mission: Reselling the record numbers of properties coming into their possession through foreclosure.

This is, perhaps, one of the most obvious symptoms of an economic system that has failed the people—it no longer supports the notion that working people deserve to own a house.

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