REO Foreclosures Grow 38 Percent In The Past Year

Increases in the number of foreclosures continues to be a problem, as evidenced by a new report released by real estate industry website Bank Foreclosure Sale.

According to the website, the number of mortgage defaults that have led to bank repossessions increased by 5 percent during the second quarter of 2010, resulting in a 38 percent increase in real estate-owned foreclosures from the previous year. Analysts say that banks are beginning to work through the backlog of homes that have long defaulted on their mortgage payments.

"Due to mortgage refinancing and loan modification programs, we're not seeing as many new foreclosure properties come onto the market right now," Bank Foreclosures Sale market analyst Simon Campbell said. "But what we are seeing is homes that have been in foreclosure for a while are being repossessed by banks trying to work through thousands and thousands of defaulted loans."

Although debt relief programs have been instrumental in helping hundreds of thousands refinance or receive permanent modifications, RealtyTrac estimates that more than 3 million foreclosure filings may be seen by the end of the year.