Homes lost to foreclosure up 6 percent from last year

SALT LAKE CITY — Utah is no longer among the top five states for home foreclosures, according to data published Thursday by RealtyTrac Inc.

In July, Utah had more home foreclosures than it had in June by 8.6 percent, according to the report. Compared with July a year ago, foreclosures last month were up 5.5 percent.

Wasatch County experienced the highest percentage of foreclosures compared to its number of households, with one in 82 homes in the process of default. Summit and Iron counties were close followers, while metropolitan Washington and Salt Lake counties came in fourth and fifth for the state in July.

Among states, Nevada posted the highest foreclosure rate in July, with one in every 82 households receiving a foreclosure notice. The number of properties in Nevada receiving a foreclosure warning last month rose nearly 7 percent from June, but fell nearly 30 percent from the same month last year.

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

Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one in every 71 homes receiving a foreclosure notice in July — more than five times the national average.

The number of homes throughout the nation lost to foreclosure surged in July, signaling that lenders are moving more quickly to take back properties from homeowners who are behind in payments.

Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, RealtyTrac Inc. said.

Banks have stepped up repossessions this year to clear out the backlog of bad loans. July makes the eighth month in a row that the pace of homes lost to foreclosure has increased on an annual basis.

Meanwhile, homeowners who are falling behind on their payments are being 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 1 percent last month from June but tumbled 28 percent versus July last year, RealtyTrac said.

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