U.S. home foreclosures surge

The number of U.S. homes taken back by lenders surged in July, foreclosure listing firm RealtyTrac Inc. said Thursday.

The firm said lenders repossessed 92,858 properties last month, up nine per cent from June and an increase of six per cent from July 2009.

Banks have been trying to clear out a backlog of properties that have been in default.

July was the eighth straight month that foreclosures increased on an annual basis.

Still, some defaulting homeowners will be allowed to stay in their homes longer, because lenders are reluctant to add to the glut of foreclosed homes on the market.

The number of properties receiving an initial default notice the first step in the foreclosure process rose one per cent last month from June, but was down 28 per cent compared with July last year, RealtyTrac said.

Initial defaults have fallen on an annual basis for the past six months.

Among states, Nevada posted the highest foreclosure rate in July, with one in every 82 households receiving a foreclosure notice.

Rounding out the Top 10 states with the highest foreclosure rate last month were: Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.