Home Foreclosures Continue to Surge

Home Foreclosures Continue to Surge

New foreclosure activity continued to surge in August, rising 36% from July and more than doubling from a year earlier.

The jump in foreclosure filings [in August] might be the beginning of the next wave of increased foreclosure activity, as a large number of subprime adjustable rate loans are beginning to reset now.

Another significant factor in the increased level of foreclosure activity is that the number of REO filings [bank repossessions] is increasing dramatically, which means a greater percentage of homes entering foreclosure are going back to the banks.