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Foreclosure Crisis Enters 9th Inning; Outcome All But Guaranteed -RealtyTrac

by devteam December 12th, 2013 | Share

Foreclosurernstarts reached a 95 month low in November. rnRealtyTrac, in its November U.S. Foreclosure Market Report, said that a total of 52,826 properties entered formal foreclosure forrnthe first time in November, down 10 percent from the previous month and 32rnpercent from a year ago.  This was thernsmallest number of foreclosure starts since December 2005, when 49,236 mortgagesrnwere put into the foreclosure process.</p

The slowing rate of starts drovernoverall foreclosure activity for the month of November down by 15 percent fromrnOctober’s levels.  A total of 113,454 orrnone in every 1,155 housing units received a default notice, notice of arnscheduled auction, or were subject to a bank repossession during the month. Thernmonth-over-month drop was the largest since November 2010 when reactions to thernrobo-signing scandal forced a drop of 21 percent. November’s activity was downrn37 percent from one year earlier. </p

Foreclosure starts continued to risernon an annual basis in 15 states and scheduled auctions which equate to startsrnin some states increased in 19 states. rnSome of the increases were dramatic; scheduled auctions increased by 726rnpercent in Oregon, 217 percent in Massachusetts; Utah was up 214 percent andrnConnecticut 199 percent.  Foreclosure startsrnin Delaware were up 104 percent.   </p

Bank repossessions or completedrnforeclosures (REO) numbered 30,461 nationally, down 19 percent from October andrn48 percent from November 2012.  It was arn76 month low for REO which were last at this level in July 2007.</p

Only five states postedrnyear-over-year increases in REOs with Delaware (up 179 percent) and Maryland (arn41 percent increase) again among the most active.  </p

States with the highest foreclosurernrates were Florida, Delaware, Maryland, South Carolina, and Illinois. Activityrnin Florida was down 15 percent from the previous month and 23 percent from onernyear earlier but despite four consecutive months of annual decreases the staternstill leads the nation in foreclosures with one filing for every 392 housingrnunits.</p

Delawarernforeclosure activity spiked 56 percent from October to November and was up 141rnpercent year-over-year, boosting the state’s foreclosure rate to second highestrnin the country. One in every 480 Delaware housing units had a foreclosurernfiling during the month, and foreclosure activity in Delaware has now increasedrnon an annual basis in seven of the last nine months.</p

Despiterna 16 percent monthly decrease, Maryland foreclosure activity continued tornincrease on annual basis in November, up 42 percent from a year ago, helpingrnthe state post the nation’s third highest state foreclosure rate: one in everyrn618 housing units with a foreclosure filing. November marked the 17th</supconsecutive month where Maryland foreclosure activity increased on an annualrnbasis. </p

Roundingrnout the top five states were South Carolina (one in every 660 housing unitsrnwith a foreclosure filing), and Illinois. Other states with elevated heavyrnactivity were Ohio,rnConnecticut, Nevada, Iowa, and Utah.</p

Among metro areas with a populationrnof 200,000 or more, those with the highest foreclosure rates were the Floridarncities of Jacksonville, Miami, Port St. Lucie and Palm Bay, along withrnRockford, Ill.</p

 “While some of the decrease in November can bernattributed to seasonality, the depth and breadth of the decrease providesrnstrong evidence that we are entering the ninth inning of this foreclosurerncrisis with the outcome all but guaranteed,” said Daren Blomquist, vicernpresident at RealtyTrac. “While foreclosures will likely continue to stage arnweak rally in certain markets next year as the last of the distress left overrnfrom the Great Recession is dealt with, it is highly unlikely that there willrnbe a foreclosure comeback that poses any major threat to the solid housingrnrecovery that has now taken hold.”

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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