US Foreclosures Jump

Posted June 14th, 2012 at 12:10 am (UTC-5)
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The number of U.S. homes in foreclosure jumped 9 percent in May from the previous month. The sharp increase in homeowners who can not repay their mortgages follows around two years of slow improvements in the battered U.S. housing market.

Thursday's report comes from a company called RealtyTrac, which monitors foreclosures across the country.

RealtyTrac spokesman Daren Blomquist says the number of foreclosures had been falling from a peak of one million in 2010. He spoke to VOA via Skype.

“We are at 750,000 to 800,000 this year, at least that is what we are on track for, so it is going to take a while to get back to that so-called normal' level of 200,000 a year.”

Many foreclosures had been delayed after a scandal over the sloppy and inaccurate way some banks were processing paperwork in these cases. Blomquist says last month's jump in foreclosures came as banks worked their way through a backlog of cases.

He says while foreclosures rose last month, many other indicators are pointing toward an improving housing market, though it will take a couple more years for expects it will take a couple of years for the market to return to normal.