U.S. home foreclosures jumped approximately 90% this past May from the same time period a year ago. The foreclosure forecast for the rest of 2007 is just as gloom. RealtyTrac uses default notices, bank repossessions, and auction notices to obtain their foreclosure numbers.

“The number of filings in May was the largest amount since RealtyTrac started tracking foreclosure activity in January 2005.

After a barely perceptible dip in April, foreclosure activity roared back with a vengeance in May,” James Saccacio, chief executive office of RealtyTrac, said in a statement.

“Such strong activity in the midst of the typical spring buying season could foreshadow even higher foreclosure levels later in the year,” said Saccaci.” Certainly not every community nationwide is seeing an increase in foreclosures, but foreclosed properties are becoming more commonplace and adding to the downward pressure on home prices in many areas.

But are the numbers at RealtyTrac reliable or hyped up?

As was stated previously RealtyTrac compile default notices, auction sale notices and bank repossessions.

“Does that mean that some properties get counted multiple times? You bet it does.”

"Were there 176,137 foreclosures in May? Nope. A house can go through several permutations: first the default, then the bank repossession, then the auction, and in some states this can go on for many months with many different filings; therefore, many of these homes are counted multiple times. So do I trust that 176 thousand? Nope. But I do trust the percentage increases?

If RealtyTrac has been counting the homes in the same way for many years, then the monthly and yearly increases are in fact apples to apples, and in fact relevant. Are they perfect? Of course not, but they are credible in showing real movement in foreclosure activity. Make Sense???”

The complete articles can be found at: http://www.cnbc.com/id/19193611
http://www.cnbc.com/id/19206921

Pam