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NC foreclosures soared 41 percent in 2010

Posted January 13, 2011

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— Foreclosures in North Carolina soared 41 percent in 2010 to more than 40,000, according to new data from foreclosure tracking firm RealtyTrac.

The total is 19 percent higher than in 2008.

North Carolina, the nation's 10th largest state, ranked 34th overall in foreclosure activity.

RealtyTrac reported 40,151 North Carolina properties, or about 1 in every 100 housing units, were involved in foreclosure.

In December, the state had some 3,000 filings related to foreclosure proceedings, which was down 26.4 percent from November and down 16 percent from a year earlier.

However, tougher times may be ahead.

Nationally, the bleakest year in foreclosure crisis has only just begun.

Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and more will miss payments as they struggle with job losses and loans worth more than their home's value, industry analysts forecast.

"2011 is going to be the peak," said Rick Sharga, a senior vice president at RealtyTrac Inc.

The outlook comes after banks repossessed more than 1 million homes in 2010, RealtyTrac said Thursday. That marked the highest annual tally of properties lost to foreclosure on records dating back to 2005.

One in 45 U.S. households received a foreclosure filing last year, or a record high of 2.9 million homes. That's up 1.67 percent from 2009.

For December, 257,747 U.S. homes received at least one foreclosure-related notice. That was the lowest monthly total in 30 months. The number of notices fell 1.8 percent from November and 26.3 percent from December 2009, RealtyTrac said.

The pace slowed in the final two months of 2010 as banks reviewed their foreclosure processes after allegations surfaced in September that evictions were handled improperly. Under increased scrutiny by the government, lenders temporarily halted taking actions against borrowers severely behind on their payments.

However, most banks have since resumed their eviction processes, and the first quarter will likely show a rebound in foreclosure activity, Sharga said.

Foreclosures are expected to remain elevated through the year as homeowners contend with stubbornly high unemployment, tougher credit standards for refinancing and falling home values. Sharga said he expects prices to dip another 5 percent nationally before finally bottoming out. The decline will push more borrowers underwater on their mortgages. Already, about one in five homeowners with a mortgage owe more than their home is worth.

The pain likely will be the most acute in states that have already been hit hard. That includes former housing boom states Nevada, Arizona, Florida and California, along with states that are suffering most from the economic downturn, including Michigan and Illinois.

Nevada posted the highest foreclosure rate in 2010 for the fourth straight year, despite a 5 percent decline in activity from the year before. One in every 11 households received a foreclosure filing last year in the state. In December, foreclosure activity increased 18 percent from November with a 71 percent spike in bank repossessions.

Arizona and California also showed sharp December increases in the number of homes banks took back, at 52 percent and 47 percent, respectively. Arizona, along with Florida, finished the year at No. 2 and No. 3 for the highest foreclosure rates.

One in every 17 Arizona households got a foreclosure filing last year, while one in 18 received a notice in Florida.

California, Utah, Georgia, Michigan, Idaho, Illinois and Colorado rounded out the top ten states with the highest foreclosure rates.

More than half of the country's foreclosure activity came out of five states in 2010: California, Florida, Arizona, Illinois and Michigan. Together, these states recorded almost 1.5 million households receiving a filing, despite year-over-year decreases in California, Florida and Arizona.

RealtyTrac tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure.

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  • RM24 Jan 14, 2011

    LETS NOT FORGET NOW WHAT WE ALL READ EARLIER THIS WEEK:

    NC State economist Mike Walden sees a silver lining in higher gas prices, saying it means the US economy has regained its footing and is getting back up to speed.

    So these FORECLOSURES must mean that our economy is back to full strength. WHEW! I was worried there for a minute.

  • Dark of the Moon Jan 14, 2011

    The definition using GDP is invalid. GDP is calculated using government spending. Thus, printing and spending money will increase GDP, but not improve the economy of the country.

    Keepin_it_real_in_NC

    ^^^^^^^^^

    I was just going to post this, but you already did a great job of it. Thank you.

    The left wing liberals just don't seem to understand it. It's like getting a new credit card to pay off your debts and then thinking you are in better shape. DUH!!!!

    Why do they even continue to try to fool anyone. Their failed policies are out there for everyone to see and unfortunately to experience.

    Charlton Dude

  • anne53ozzy Jan 14, 2011

    I believe that many of these were at secondary homes or at spec homes at the coaat.....More info?

  • Keepin_it_real_in_NC Jan 14, 2011

    "Yes my FICA deduction DECREASED 2% this year."

    Yes, thanks to the Republican lead House. Pelosi did not do this when she was in charge. Why did it take two years into Obama's term to get this. Hmmm, DemocRATs ran everything and they think all your money belongs to them.

  • Keepin_it_real_in_NC Jan 14, 2011

    "Of course if you would like to provide a quantitative analysis as to why the last several years can be defined as a depression, be my guest."

    The definition using GDP is invalid. GDP is calculated using government spending. Thus, printing and spending money will increase GDP, but not improve the economy of the country.

  • iworkandpaytaxes Jan 14, 2011

    YES WE CAN, make things worse YES WE CAN, divide the country YES WE CAN, look weak to the rest of the world YES WE CAN, sell the soul of America to foreign investors
    Keepin_it_real_in_NC
    January 14, 2011 9:33 a.m.

    Yes we can buy your foreclosed home. Yes we did get a raise. Yes my FICA deduction DECREASED 2% this year. Yes we can get our 401K back up. Yes we can keep you crying daily on GOLO. Yes we did!!! Cry b y t c h cry. Lol I love these sheep.

  • Rebelyell55 Jan 14, 2011

    It is more financally beneficial to the banks to foreclose than to keep families in home.
    It's better for anyone to own than to rent.
    Change your voter reg. to indep. and then maybe we'll have more choices than the two parties that are killing America.

  • Rebelyell55 Jan 14, 2011

    Here it is, just a little later than Nov. prediction. The banks are sticking to their 5 year business plan. The banks didn't want to help anyone. They want this property. Long term they are going to make a killing off of this. They get money for write off (which they shouldn't), they got the money off the 1st deal , they got money from the goverment by help a few to qualify for goverment (our money) and now they will make a killing off of resale of property. Corp greed a live and well in America. What they going do after they eaten all the honey and killed all the bees?

  • WolfPackAlum Jan 14, 2011

    "That's because a recession is better than a depression and Obama has brought us into a depression."

    The commonly accepted definition of a depression is a prolonged recession where real GDP declines by 10 percent or more. From Q4 2007 to Q2 2009, real GDP declined by 4%. As of Q3 2010, real GDP was 0.5% below the high of 2007. Looking at current trends, Real GDP will likely reach a new all time high over the next few quarters. By standard definition, we most certainly did not experience a depression, but rather a balance sheet recession. The economy is now in far better shape than it was two years ago.

    Of course if you would like to provide a quantitative analysis as to why the last several years can be defined as a depression, be my guest.

  • Keepin_it_real_in_NC Jan 14, 2011

    YES WE CAN, make things worse
    YES WE CAN, divide the country
    YES WE CAN, look weak to the rest of the world
    YES WE CAN, sell the soul of America to foreign investors

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