Foreclosure activity rises in U.S., Va.

RealtyTrac reported today that U.S. foreclosure activity rose to the highest quarterly total since the research company began tracking foreclosures in 2005.

Foreclosure filings, which include default notices, auction sale notices and bank repossession, were reported on 880,829 U.S. properties in the second quarter, up 20.3 percent from the same three-month period a year ago, the research company reported.

In Virginia, foreclosure activity rose 8.75 percent in the quarter from a year ago. A total of 15,417 households received notices, or one in every 212 households.

By comparison, one in every 144 households nationwide received a foreclosure filing -- so fewer people in Virginia were having trouble making their mortgage payments than the nation as a whole.

The problem here is still severe and showing no signs of abating, said Connie Chamberlin, president and chief executive officer of Housing Opportunities Made Equal, a housing-advocacy group in Richmond.

The foreclosure problem is complicated by rising unemployment, she said. As people lose their jobs, they are unable to make their mortgage payments.

Making matters worse, loan servicers are overwhelmed by the scope of the problem and it is difficult to get through to them, she said. Loan-modification programs are available for some borrowers, if they can get through to the servicers.

"The big problem is servicers are not adequately staffed and the staff is not adequately trained," Chamberlin said. "One part of the company is reviewing a loan for modification. Another part is busying sending out foreclosure notices."

For the first six months, foreclosure activity nationwide increased nearly 15 percent from the year-earlier period. In Virginia, it rose 3.8 percent in the same time period.

Nevada posted the highest foreclosure rate in the first half of the year, with one in every 16 households receiving notices of default, auctions sale or bank repossessions.

Arizona had the second highest rate, with one in every 30 households in financial trouble, followed by Florida with one in every 33 household receiving notices.

"Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes are now worth represent a potentially significant future risk," said James J. Saccacio, CEO of RealtyTrac.

Contact Carol Hazard at (804) 775-8023 or .