Residential foreclosures have been rising for the past six months and will continue to accelerate in 2011, according to CoreLogic.
The analytics firm estimates the number of actual foreclosures in 2010 totaled 1.3 million, up from the 1.1 million families who lost their homes in the previous year.
"That runs at about 25,000 foreclosures a week in 2010 vs. about 21,600 a year ago," said CoreLogic senior economist Sam Khater.
The economist expects foreclosures will continue to rise in 2011 even though the percentage of seriously delinquent loans has been declining.
He points out that more than one in five borrowers is underwater, where the value of the house is lower than the size of the mortgage, and negative equity is a significant factor in foreclosure.
Once a borrower falls behind on payments, negative equity makes it difficult to modify or restructure the mortgage to avoid foreclosure.
CoreLogic estimates the aggregate level of negative equity in the United States now stands at $744 billion, a figure that will weigh on the housing market for quite some time.
"We are still in the fourth or fifth inning for those borrowers who will be upside down for an extended period of time," Khater said.
Recently, CoreLogic released a report that shows 10.8 million single-family loans, or 22.5% of all mortgages, are underwater, as of Sept. 30, compared to 11 million in the second quarter.
CoreLogic analysts attributed the 200,000 decline in underwater mortgages to foreclosures on severely negative-equity properties.
The Santa Ana, Calif., provider of financial and property information defines negative equity as a mortgage with a loan-to-value ratio of 105% or higher.
