Gonna get much worse before it gets any better.

Foreclosure filings skyrocket

Filings jump 58% in first half of the year and could surpass 2 million this year as the housing market weakens, according to a report.

In too deep, homeowners use prayer, barricades to fight eviction. CNN’s Deborah Feyerick reports (May 18)

NEW YORK (Reuters) – U.S. home foreclosure filings rose 58 percent in the first six months of the year and could surpass 2 million this year as the housing market continues to deteriorate, a report said.

Foreclosure filings in the first half spiked from the same period last year to 925,986 as many overstretched borrowers have been caught between rising interest rates and falling home prices. The Federal Reserve has cited the faltering housing market as the biggest risk to economic growth.

The foreclosure filings were also up more than 30 percent from the previous six-month period, at a rate of one filing for every 134 U.S. households, said RealtyTrac, an online marketplace for foreclosure properties.

Foreclosure filings include default notices, auction sales notices and bank repossessions and they were reported on a total of 573,397 properties.

“Despite a slight drop in June, foreclosure activity shows no sign of slowing down,” James Saccacio, RealtyTrac chief executive officer, said in a statement Monday.

“If the current pace were to continue, foreclosure filings would surpass 2 million by the end of the year, which would represent a year-over-year increase of more than 65 percent,” Saccacio said.

California had the highest number of foreclosure filings in the first half of 2007, while Nevada posted the country’s highest foreclosure rate, with one filing for every 40 households.

CNNMoney.com