Foreclosures: Default Notices Down, Repossessions Up

While it's hard to say that 97,123 homeowners getting default notices in July is good news, the fact that this number is down 32 percent from its peak of 142,064 in April 2009 means that we're starting to see the light at the end of the tunnel. But the news is not all good, as bank repossessions continue to rise. Bank repossessions increased on a year-over-year basis for the eighth straight month, according to RealtyTrac's July 2010 U.S. Foreclosure Market Report.

Overall, 325,229 properties -- a nearly 4 percent increase from June -- received some type of foreclosure filing, which includes default notices, scheduled auctions and bank repossessions. One in every 397 U.S. housing units got a foreclosure filing last month. We've now seen 17 months of foreclosure activity exceeding 300,000 based on RealtyTrac's numbers.

These record numbers of foreclosures are continuing to wreak havoc on the real estate market for everyone. in fact, Trulia.com found that one in four home sellers nationwide had to cut their list price to attract buyers. Until the number of foreclosures subside, there will be downward pressure on home prices.