Foreclosure auctions were scheduled for thernfirst time on 147,003 properties, up 9 percent from July and 2 percentrnyear-over-year.</p

Actual foreclosures, that isrnhomes taken into banks’ owned real estate inventories, were the highest inrnRealtyTrac’s reporting history.  95,364rnproperties were foreclosed, an increase of 3 percent from the July total of 92,858rnand 25 percent higher than one year earlier. rnThe previous peak of 93,777 foreclosures occurred in May of this year. </p

James J. Saccacio, chiefrnexecutive officer of RealtyTrac said, “The trend lines of decreasingrndefault notices and increasing bank repossessions converged in August, withrnvirtually the same number of new default notices and bank repossessions for thernmonth – a clear indication that the clogged foreclosure pipeline is beingrncarefully managed on both ends by lenders and servicers.  On the front end, seriously delinquent loansrnare rolling into foreclosure at an unusually slow rate, while on the back endrnthe dammed-up inventory of properties already in foreclosure is moving to REOrnin a steady stream rather than a flood – presumably to prevent further erosionrnof home prices.”</p

Nevada, Florida, andrnArizona continued to lead the nation in the rate of filings, with Nevadarnranking highest for the 44th consecutive month. One in every 84rnhousing units in the state received a foreclosure notice during the month, 4.5rntimes the national average.  Despite thernhigh figures, the state is improving; foreclosure activity was down 25 percentrnyear-over-year for the 11th straight month.</p

In Florida, one in everyrn155 homes was the subject of a filing and in Arizona, one in every 165rnunits.  Other states with high rates ofrnforeclosure were California (1:194) and Idaho (1:222).  Filings in Idaho were up 9 percent from Julyrnand 11 percent from a year earlier.</p

California alone accountedrnfor 20 percent of the total number of filings in the nation with 69,143rnrecorded, a 3 percent increase from July but a 25 percent decrease from Augustrn2009.  Florida had 56,877 filings, 17rnpercent of the nation’s total, up 2 percent month-over-month but down 46rnpercent from August 2009. </p

All ten of the metropolitan areasrnwith the highest foreclosure rates posted year-over-year decreases for thernsecond month in a row.  The top metrornarea was Las Vegas-Paradise Nevada with one in every 73 units receiving arnfiling followed by Modesto, California (1:95) and Stockton, California (1:100)</p

MND has discussed the timing of REO asset disposition and its effect on home prices…</p

Home Repossessions Rising As Banks Convert Shadow Inventory to Real Inventory</p

S&P: Shadow Inventory Still a Concern. Reason to Extend Fed’s MBS Program?</p

Home Sellers Still See Conditions as Unfavorable. Perspective on Shadow Inventory</p

Foreclosure Filings Drop. Prevention Policies Distorting Supply and Demand

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