Va. foreclosures tripled in 2008

By Carol Hazard

Published: January 15, 2009

Last year, 49,011 households in Virginia were in danger of losing their homes, up 201 percent from a year earlier, according to a report released today by RealtyTrac.

In all, 1.5 percent of all households in the state received at least one foreclosure filing, less than the national rate of 1.8 percent, the online researcher of foreclosures reported.

Nationally, 3.2 million filings were reported on 2.3 million properties last year, an increase of 81 percent from 2007.

In the Richmond area, filings rose 468 percent last year from 2007, with 5,159 households receiving notices. That means 1.03 percent were delinquent with mortgage payments.

The Richmond Times-Dispatch reviewed foreclosure data for 2007 and the first 11 months of 2008, using only foreclosure sales recorded by state's circuit courts. RealtyTrac figures take into account default notices, auction-sale notices and bank repossessions.

In this month's The Times-Dispatch study, the number of foreclosures increased 99.2 percent in Virginia, and 84.1 percent in the Richmond region. December transaction data is not yet available.

"Unless dramatic action is taken, there will continue to be no end in sight," said Connie Chamberlin, president and chief executive officer of Housing Opportunities Made Equal of Virginia Inc., a housing-advocacy group in Richmond.

Bankruptcy judges should be given the ability to modify liens on houses, she said. Also, "lenders must be willing to modify more loans in far greater numbers and on far better terms than they are doing."

More funding to deal with foreclosure prevention is needed, Chamberlin said. "If Virginia had a housing trust fund, we would have money to deal with some of these housing issues and help stop foreclosures."

Nevada posted the highest foreclosure filing rate in the country in 2008, with one in every 14 households receiving foreclosures notices. Next were Florida and Arizona, each with one in every 22 households receiving notices.

The other states with the greatest percentage of households receiving filings were California, Colorado, Michigan, Ohio, Georgia, Illinois and New Jersey. Virginia had the 16th highest percentage.

"The big jump in December foreclosure activity was somewhat surprising given the moratoria enacted by both Freddie Mac and Fannie Mae," James Saccacio, chief executive officer of RealtyTrac, said of the overall numbers.

"Clearly, the foreclosure prevention programs implemented to date have not had any real success in slowing down this foreclosure tsunami."

Contact Carol Hazard at (804) 775-8023 or .