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Foreclosures Rose 24% in First Quarter

Rate expected to rise through the summer

By the Associated Press

Posted Apr 16, 2009 8:31 AM CDT

(AP) – The number of American households threatened with losing their homes grew 24% in the first 3 months of this year and is poised to rise further as major lenders restart foreclosures after a temporary moratorium, figures out today show. Though the Obama administration has invested $75 billion to help up to 9 million borrowers avoid foreclosure, lenders' willingness to go along with the plan isn't clear.

Nationwide, nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same time period a year earlier. Nearly 191,000 properties completed the foreclosure process and were repossessed by banks in the quarter. The number, down 13% from the fourth quarter of last year, is expected to rise through the summer and then possibly taper off.

[Images (2)]

[Quotes (1)]

In this Feb. 17, 2009 file photo, a foreclosure sign sits outside a home for sale in Phoenix. RealtyTrac releases foreclosure data for the first three months of the year on Thursday. (Ross D. Franklin)

A for sale sign hangs in front of a Homestead, Fla. home Tuesday, March 24, 2009. (AP Photo/J Pat Carter)

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The effectiveness of the plan overall obviously is going to depend on the level of industry participation.
- Paul Koches, general counsel of Ocwen Financial

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Foreclosures Rose 24% in First Quarter