New | US bank home repossessions drive foreclosures to 18-month high

A surge in bank repossessions of properties last month pushed overall foreclosure activity across the United States to an 18-month high, according to a report by industry firm RealtyTrac.

Overall, 125,875 homes across the country were at some point in the foreclosure process in April, a 3 per cent jump from March. The increase drove foreclosure activity up 9 per cent from year-ago levels, RealtyTrac said.

Last month's jump in foreclosure activity, which includes foreclosure notices, scheduled auctions and bank repossessions, was mainly driven by a 25 per cent rise in repossessions.

A total of 45,168 homes were reclaimed by banks in April, up 50 per cent from a year ago, bringing bank repossessions to their highest levels in 27 months.

RealtyTrac said the jump in repossessions was the aftermath of a surge in foreclosure starts that happened in October and that properties are going back to the foreclosing lender.

"In this particular market, an influx of distressed inventory could actually help stimulate sales during the spring and summer buying season as new listings become available, often in the middle to lower ranges of the market," said RealtyTrac vice-president Daren Blomquist.