Illinois Sees 86% Boost in Default Notices in July

Despite legislative efforts to delay foreclosures, in July foreclosure activity in Illinois increased almost 35% from June, boosted by an 86% surge in default notices, according to the latest U.S. Foreclosure Market Report from RealtyTrac. A state law enacted April 5 gave delinquent borrowers an extension of up to 90 days before the start of the foreclosure process resulting in low levels of filings in May and June. The report shows foreclosure filings were reported on 360,149 properties, up 7% from June and an increase of 32% from July 2008. "We're seeing significant growth in both the initial notices of default and in the bank repossessions," said James Saccacio, chief executive officer of RealtyTrac. Nevada documented the nation's highest state foreclosure rate, although initial default notices in Nevada decreased 18% from June. This is likely the result of a new state law requiring lenders to offer mediation to homeowners facing foreclosure, which took effect July 1. Scheduled auctions and real estate owned assets in Nevada both increased more than 20% from June, boosting overall foreclosure activity in the state by 4% on a month-over-month basis. Initial defaults in California spiked 15% from June, and the state registered the nation's second highest state foreclosure rate for the third month in a row. Scheduled auctions in California were down 1% from June, but REO was up 4%. In Arizona, scheduled auctions jumped 25% from June while bank repossessions stayed flat. The top four state foreclosure activity totals in July were reported by California, with 108,104 properties receiving a foreclosure filing; Florida, with 56,486 properties; Arizona, with 19,694 properties; and Nevada, with 19,535 properties. Together these four states accounted for nearly 57% of the nation's total foreclosure activity.