The good news is Virginia was not among the 10 states in June with the highest foreclosure rates in the country.

It was No. 11. But the foreclosure rate here continues to rise, according to a report released yesterday by RealtyTrac Inc.

"Foreclosures are rising faster in Virginia than almost anywhere else," said Connie Chamberlin, president and chief executive officer of Housing Opportunities Made Equal, a housing advocacy group for the state.

A year ago, Virginia was in the middle at No. 25, according to RealtyTrac.

Virginia's stable economy kept foreclosures at bay, but the problem is catching up here. Moreover, lending practices are loose, possibly more so than in other states, Chamberlin said.

"Our restrictions on lending practices are pretty minimal. No one was minding the store."

The number of filings in Virginia increased 204 percent in June from the same month a year ago, according to the online foreclosure researcher.

One in every 615 Virginia households -- or a total of 5,255 -- received a foreclosure filing. Filings include default notices, auction sale notices and bank repossessions. A year ago, one in every 1,678 households was in danger of losing their home.

By comparison, foreclosures nationwide rose 53 percent from a year ago. One in every 501 U.S. households received a foreclosure filing.

The rates in Virginia were driven by a high number of foreclosures in Northern Virginia, particularly in Prince William County, Chamberlin said.

"We know these loans were focused on minority communities. The Hispanics in Northern Virginia, in particular, were targeted," she said.

Other trouble spots are around Richmond and Tidewater, Chamberlin said.

Nationwide, June was the second consecutive month with more than a quarter-million properties in some phase of foreclosure, said James J. Saccacio, chief executive office of RealtyTrac.

Although foreclosure activity in the U.S. fell 3 percent in June from the previous month, the year-over-year increase indicates that the foreclosure cycle has yet to peak, Saccacio said.

Nevada, California and Arizona continued to record the highest foreclosure rates in the nation. Rounding out the top 10 were Florida, Michigan, Ohio, Colorado, Georgia, Indiana and Utah.
Contact Carol Hazard at (804) 775-8023 or chazard@timesdispatch.com.