US Home Foreclosures Rise in May

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Banks repossessed 11 percent more homes in May than a month earlier, although repossession activity was still 29 percent below year-ago levels, according to new data from RealtyTrac.

The increased repossessions may be a sign that lenders are more willing to take control of property, with housing prices are rising.

The number of foreclosures starts rose four percent from April, but were down 33 percent from a year earlier. The number of foreclosure filings, including default notices, scheduled auctions and bank repossessions, was up two percent in May from the previous month, but still down 28 percent from a year earlier.

"Foreclosure activity continued to bounce back in some markets where it may have appeared the foreclosure problem had been knocked out by an aggressive combination of foreclosure prevention efforts over the past two years," said Daren Blomquist, vice president at RealtyTrac. "Places like Nevada, where foreclosure starts increased to a 20-month high, and Maryland, where overall foreclosure activity increased to a 33-month high.

"Still, the emerging housing recovery has strengthened most local markets enough to quickly shake off a few more blows from these nagging foreclosures."

Florida posted the highest foreclosure rate in the country, after a 20 percent monthly increase. One in every 302 Florida housing units had a foreclosure filing during the month, nearly three times the national average, RealtyTrac reports. Florida foreclosures jumped 39 percent from the two-year-low in April, but were still down 17 percent from a year ago.

Nevada, the previous month's leader in foreclosures, increased in May after 27 consecutive months of decreases. Bank repossessions increased 4 percent from the previous month but were still down 64 percent from a year ago.

"The increase in overall foreclosure activity in Nevada was driven primarily by an 81 percent year-over-year increase in foreclosure starts, which reached a 20-month high in May," the firm reports.