U.S. home foreclosures hit record high in August

RealtyTrac sees a record 1.2 million repossessions this year, up from just under 1 million last year, with more than 3.2 million homes in some stage of foreclosure.

In 2005, before the housing bust, banks took over just about 100,000 houses, according to the Irvine, California-based company.

“It really does look like we’re seeing a slowdown of new foreclosures being initiated as part of a means to manage inventory levels on the market,” RealtyTrac senior vice president Rick Sharga said in an interview.

Banks foreclosed on 95,364 properties in August, topping the May 2010 record by 2 percent. These repossessions, or real estate owned (REO) homes, jumped 3 percent in the month and 25 percent in the year.