In mid-July, RealtyTrac, one of the nation’s largest foreclosure listing firms (pre-foreclosure, auction and REO properties) reported that foreclosure filings were down by 5% in the first half of 2010, but numbers remain above those from 2009 by 8%. This is the latest in the good news/bad news reporting when it comes to the U.S. housing market.

"The second quarter was a tale of two trends," said James J. Saccacio, chief executive officer of RealtyTrac. "The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short sale and loan modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009."

According to Saccacio, U.S. housing market will exceed three million properties with foreclosure filings by the end of the year. As with the stock market, the housing market has rolled up and down in 2010 and has not shown signs of stabilization. Even with some positive numbers being reported and a level of improvement in housing inventory, the market is sitting on a significant number of distressed properties and delinquent loans.

The foreclosure rates are also very regional in nature – Nevada posts the highest rates this year (6%), with Arizona and Florida following.

Other states with foreclosure rates ranking among the nation's 10 highest were California (2.54 percent), Utah (1.91 percent), Georgia (1.79 percent), Michigan (1.73 percent), Idaho (1.68 percent), Illinois (1.61 percent), and Colorado (1.40 percent).

 /kh