*Foreclosures fall 6 percent in May from April
*

By ALAN ZIBEL
The Associated Press
Thursday, June 11, 2009 12:02 AM

WASHINGTON -- The number of U.S. households on the verge of losing their
homes dipped in May from April, and the annual increase was the smallest in
three years.

But as layoffs, rather than risky mortgages, become the main reason that
borrowers default on their home loans, foreclosures likely will remain
elevated this year and into 2010. Many economists expect unemployment, now
at 9.4 percent nationwide, to rise as high as 10 percent, and some project
it will exceed the post-World War II record of 10.8 percent.

Foreclosure filings fell 6 percent in May from April, according to
RealtyTrac Inc. More than 321,000 households received at least one
foreclosure-related notice last month - 18 percent more than a year earlier
- but the smallest annual gain since June 2006.

Despite the drop from April, it was the third-highest monthly rate since
Irvine, Calif.-based RealtyTrac began its report in January 2005, and the
third straight month with more than 300,000 households receiving a
foreclosure filing.

One in every 398 U.S. homes received a foreclosure filing last month,
according to the foreclosure listing firm's report.

The mortgage industry has resumed cracking down on delinquent borrowers
after foreclosures were temporarily halted by mortgage finance companies Fannie
Mae and Freddie
Macand other
lenders.

"It would not be a huge surprise to see the numbers level off a little bit
at this point," said Rick Sharga, RealtyTrac's senior vice president for
marketing.

Banks repossessed about 65,000 homes in May, up from 64,000 in April, due to
big increases in several states including Michigan, Arizona and Nevada.

The Obama administration announced a plan in March to provide $50 billion
from the financial industry rescue fund as an incentive for the mortgage
industry to modify loans at lower monthly payments.

But the effectiveness of the relief plan remains unclear, with questions
lingering about how much the lending industry will cooperate. Many housing
counselors say it hasn't made much of a difference so far.

After banks take over foreclosed homes, they usually put them up for sale at
deep discounts, pulling down prices for other sellers. Nationwide, sales of
foreclosures and other distressed properties made up about 45 percent of the
market in April, according to the National Association of Realtors.

The supply of new foreclosures had diminished in recent months as banks held
off on taking back properties, but it's starting to surge again, said Gary
Kent, a San Diego real estate broker who focuses on the foreclosure market.

"Everything I've got that's priced right is just flying off the shelves," he
said.

On a state-by-state basis, Nevada had the nation's highest foreclosure rate
in May with one every 64 households receiving a filing. California took the
No. 2 slot previously occupied by Florida. California's rate was one in
every 144 households.

In Florida, one in every 148 households received a foreclosure filing.
Rounding out the top 10 were Arizona, Utah, Michigan, Georgia, Colorado,
Idaho and Ohio.

Among large cities, Las Vegas led the way with one in every 54 households
receiving a filing. Four California metropolitan areas - Stockton, Modesto,
Riverside-San Bernardino and Merced - were next, followed by Cape Coral-Fort
Myers, Fla.; Bakersfield, Calif.; Orlando, Fla.; Vallejo-Fairfield, Calif.;
and Miami.


--
Greg Fisk
Lynne Ferrante

Ferrante & Fisk Team
Coldwell Banker Real Estate
170 Jennifer Rd.,Suite 102
Annapolis, MD 21401
Toll Free: (800)456-1996 ext.2542
Lynne's Cell: (301)742-1542
Greg's Cell: (410)507-7262
Office: (410) 224-2200
Fax: (410) 224-2258

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