Servicers Step up Foreclosure Activity in Judicial States

by devteam December 13th, 2012 | Share

Foreclosure filings in November were 19rnpercent below filings in November 2011, the 26th consecutive monthrnthat the year-over-year filings decreased. rnFilings during the month including default notices, schedules auctions,rnand bank repossessions were reported on 180,817 U.S. properties, down 9 percentrnfrom October.  One in every 728 U.S.rnhousing units received a foreclosure filing during the month.</p

These figures were reported byrnRealtyTrac in its monthly U.S. Foreclosure Market Report.  The Irvine California company tracks threerncategories of foreclosure filings gathered from county level sources: Notice of Default (NOD), Auctions, and REO.</p<ol start="1" type="1"</ol

Foreclosure starts, variouslyrnreferred to as default notices or notices of sale depending on the state, werernfiled for the first time on 77,494 properties. rnThis was down 13 percent from October, 28 percent lower than in the samernperiod in 2011, and at the fewest seen since December 2006.</p


Banks completed foreclosures onrn59,134 properties.  This is an increasernof 11 percent from the previous month and 5 percent from one year earlier.  It is also a nine-month high and the firstrnannual increase in bank repossessions since October 2010.</p

“The drop in overall foreclosurernactivity in November was caused largely by a 71-month low in foreclosure starts</bfor the month, more evidence that we are past the worst of the foreclosurernproblem brought about by the housing bubble bursting six years ago," said DarenrnBlomquist, vice president at RealtyTrac. "But foreclosures are continuing tornhobble the U.S. housing market as lenders finally seize properties that startedrnthe process a year or two ago – and much longer in some cases. We're likely notrncompletely out of the woods when it comes to foreclosure starts, either, asrnlenders are still adjusting to new foreclosure ground rules set forth in thernNational Mortgage Settlement along with various state laws and court rulings."</p

For the first time RealtyTrac lookedrnat the foreclosure activity of the five largest servicers, Bank of America,rnWells Fargo, JPMorgan Chase, Citi and Ally/GMAC.  Among these servicers non-judicialrnpre-foreclosure activity (NOD, NTS) decreased 41 percent in November comparedrnto a year ago, led by Bank of America with a 63 percent decrease and Citi withrna 40 percent decrease. Meanwhile judicial pre-foreclosure activity (LIS, NFS)rnfor the five lenders combined increased 26 percent from a year ago, led byrnChase with a 114 percent increase and Wells Fargo with a 37 percent increase.</p

The national decrease in foreclosurernfilings on a year-over-year basis was driven by large drops in California,rnGeorgia, Michigan, Texas and Arizona but foreclosure activity increased in 23rnstates and the District of Columbia and nine states posted 12-month highs in activityrnin November including some of the largest state like Florida, New Jersey, NewrnYork, and Ohio.  Florida remained at therntop of all states in its rate of foreclosures with one in every 304 unitsrnaffected.  It was followed by Nevada,rnIllinois, California, and South Carolina.</p


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About the Author


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

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