Foreclosure activity soars in Tampa Bay area, but crisis nears end

Overall, the nation’s foreclosure rate grew 7 percent last month to a total of 124,910 housing units with filings on them.

July was the fifth consecutive month with a year-over-year increase in overall foreclosure activity following 53 consecutive months of decreases, RealtyTrac said. The rate at which banks are starting new foreclosure cases has dropped, evidence that the foreclosure crisis in nearing an end.

Bank repossessions on the national level jumped 81 percent from a year ago, to 46,957 properties in July, according to the report. Despite the recent increases, REOs in July were still less than half their peak of 102,134 in September 2010, but more than twice their pre-crisis average of 23,119 a month in 2005 and 2006.

There were a total of 45,381 U.S. properties that started the foreclosure process for the first time in July, down 8 percent from the previous month and down 9 percent from a year ago to the lowest level since November 2005 – a almost 10-year low, according to RealtyTrac.

Foreclosure starts in July were less than one-fourth of their peak of 203,948 in April 2009 and below their pre-crisis average of 52,279 a month in 2005 and 2006. A total of 44 states, including New Jersey, posted increases in bank repossessions in July over a year ago. Among foreclosures that were completed last quarter, the average time from start to finish (loan default to property repossession) was 629 days, according to real estate data company RealtyTrac. In all, 61 percent of loans still in foreclosure were originated during the bubble years of 2004 to 2008.

Nevada was No. 5 nationally for its increase in scheduled foreclosure auctions.

However, that trend was halted in July when Florida, and by association Miami, experienced an influx of new foreclosure starts.

Though Jacksonville, Florida, reported a slightly higher foreclosure rate (one in every 310 housing units), Miami was at the top among the nation’s 20 biggest cities. The state’s 23 percent gain came in after New York, New Jersey, Massachusetts and Connecticut.

Charlotte reported the region’s highest foreclosure rate, with one in every 370 homes in some stage of foreclosure, ranking 16th among the state’s 67 counties.

The report shows that one in every 339 homes in the Miami metropolitan area saw foreclosure filings last month. One in every 520 New Jersey housing units had a foreclosure filing during the month. Filings declined 8 percent in Minneapolis, while Atlantic City, N.J., had the highest rate among all metro areas with populations of at least 200,000.

If you find yourself in danger of falling behind on (or no longer being able to afford) your monthly mortgage payments, immediately look into ways to cut your budget or make other changes to save your home from foreclosure. That’s the longest it’s been since RealtyTrac started reporting the figure in the first quarter of 2007.