Foreclosure Activity Becoming Increasingly Local

Falling foreclosure starts pulled overall foreclosure activity down 2rnpercent in August compared to July and 34 percent lower than one year earlier.  Filings were reported on 128,560 propertiesrnin August or one in every 1,019 U.S. housing units.  This was the 35^th consecutivernmonth where foreclosure activity has decreased on an annual basis RealtyTracrnsaid in its U.S. Foreclosure Market Report released this morning.</p

RealtyTracrntracks foreclosure filings nationwide in three categories, Defaults (Notices ofrnDefault (NOD) or Lis Pendens), Auctions (Notice of Trustee’s Sale and Notice ofrnForeclosure Sale (NTS and NFS)); and Real Estate Owned (REO), properties thatrnhave been foreclosed on and repurchased by a bank)</p

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Foreclosure starts dropped by 44rnpercent from levels in August 2012.  A totalrnof 55,775 U.S. properties started the foreclosure process during the month, thernlowest level since December 2005. Starts fell on an annual basis in 38 statesrnand were down dramatically in both non-judicial states like Colorado (down 80rnpercent), Arizona and Washington (both down 65 percent), California (-57rnpercent), and Michigan (-55 percent), and judicial states such as Illinois andrnMassachusetts (-66 percent each), and Florida (-65 percent). </p

There were, however, month-over-monthrnincreases in 17 states, including Nevada (+226 percent), Ohio (+44 percent), andrnMaryland (+24 percent).  </p

REO increased six percent from Julyrnbut was still down 25 percent from a year earlier.  This is the third time in four months REOrnactivity has gone up and it has now reached a five month high.  Bank repossessions were up from July’srnnumbers in 16 states and have increased from one year earlier in 23rnstates.  New York had an annual increasernof 123 percent, returning to levels last seen almost three years ago.  New Jersey was up 63 percent to a 31 monthrnhigh and Florida, Ohio, and Indiana all increased by over 40 percent from thernprevious year.</p

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Nevada regained its number onernposition for overall foreclosure activity. rnIn addition to the 226 percent jump in foreclosure starts scheduledrnauctions increased 96 percent from July. Like many such anomalies the Nevadarnmega-increases stemmed from changes in foreclosure rules. There were 3,236rnfilings in the state, one for every 359 housing units.   Florida fell to second position with 23,372 filingsrnor one in every 383 housing units, down 14 percent from July and 15 percentrnfrom a year earlier. They were followed by Ohio (one filing for every 537rnhousing units,) Maryland (one in 609), and Delaware (one in 638). rn</p

“The foreclosure floodwaters havernreceded in most parts of the country, but lenders and communities continue tornclean up the damage left behind, which means the recent uptick in bankrnrepossessions is a trend that will likely continue into next year,” said DarenrnBlomquist, vice president at RealtyTrac. “Meanwhile foreclosure flash floodsrnwill continue to hit some markets over the next few months as delayedrnforeclosure starts are quickly pushed into the pipeline. This was the case withrnthe jump in Nevada foreclosure starts in August.”

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