According to RealtyTrac, an online marketplace for foreclosure properties, national foreclosure activity for the month of July was up eight percent from the previous month and 55 percent compared to a year ago. The company released its July 2008 U.S. Foreclosure Market Report today, in which it said a total of 272,171 properties across the nation, or one in every 464 properties, received a foreclosure filing last month.

Bank repossessions continued to be the fastest growing segment of foreclosure activity in July, posting a 184 percent year-over-year increase. Default notices showed a 53 percent annual increase, while auction notices rose by 11 percent.

According to James J. Saccacio, CEO of RealtyTrac, “The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale.” Saccacio said RealtyTrac now has more than three quarters of a million properties in its active REO database. That number represents approximately 17 percent of the inventory of existing homes on the market, as reported by the National Association of Realtors in June.

Nevada, California, and Florida post highest state foreclosure rates.
Nevada continued to hold the top spot for state foreclosure rates, with one in every 106 properties receiving a foreclosure filing during July. Foreclosure activity in Nevada was up 15 percent from the previous month and 97 percent from July 2007, pushing the total number of properties with foreclosure filings to more than 10,000. REOs in the state were up 384 percent compared to last year.

California received the nation's second highest foreclosure rate, with one in every 182 properties receiving a foreclosure filing. One in every 186 properties in Florida incurred a foreclosure filing in July, giving it the third highest rate. Other states ranking among the top 10 were Arizona, Ohio, Georgia, Michigan, Colorado, Utah, and Virginia.

To view RealtyTrac's full report, click here.