Foreclosure rate up 1st time in months

Foreclosure filings up 9 percent from April to May

Even though there's been some improvement in the housing market recently, the number of foreclosed homes is up again.

Foreclosure filings were up in May, nine percent from April.

Channel 4 spoke with a real estate expert to find out more specifically how the Jacksonville market looks.

About 12% of homes in Jacksonville are in foreclosure, but realtors we spoke with said it's stayed around that range for several months now.

Experts said they saw this second wave of foreclosures coming.

"You could probably trace it back to a few years ago, when five year loans began, when they first originated," Keller Williams realtor David Elian said. "People a few years ago would do a five year arm and adjustable rate mortgage. That is probably the wave that we're seeing right now come due."

That wave is here, with a nine percent increase in foreclosures in May, the first increase since January.

Realtytrac reports 205,990 properties got default and foreclosure notices, scheduled auctions and bank repossessions nationwide.

"They probably started the foreclosure process two years ago and now these properties are just now," Elian said. "That's that wave that's just hitting the market right now."

Broker David Elian said Jacksonville's in fairly good shape compared to south Florida, which leads the state in the number of foreclosures, and to other states like California and Nevada.

"In Jacksonville, our prices went up from 2000 to 2006, but not as high as what it did with these other areas where it just went through the roof,"
Elian said.

There's at least somewhat of a bright side to the increase in foreclosures -- it's a buyers market.

"At the same time, there's tremendous activity in the market, where people are really buying some great deals right now in foreclosures," Elian said.

Georgia had the highest foreclosure rate, taking the title from states that usually have the highest like Florida, California, Arizona and Nevada.

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