California, Florida and Michigan Hit Highs of 12 Months or
New State Law Pushes Nevada
Defaults to 64-Month Low, Las Vegas No Longer No. 1
Calif. – Nov. 10, 2011 — RealtyTrac® (www.realtytrac.com), the
leading online marketplace for foreclosure properties, today released its U.S.
Foreclosure Market Report™ for October 2011, which shows foreclosure filings —
default notices, scheduled auctions and bank
repossessions — were reported on 230,678 U.S. properties in October,
a 7 percent increase from the previous month, but still down nearly 31 percent
from October 2010. The report also shows one in every 563 U.S. housing units
with a foreclosure filing during the month.
foreclosure numbers continue to show strong signs that foreclosure activity is
coming out of the rain delay we’ve been in for the past year as lenders
corrected foreclosure paperwork and processing problems,” said James Saccacio,
chief executive officer of RealtyTrac. “However, recent state court rulings and
new state laws keep changing the rules of the foreclosure game on the fly,
creating more uncertainty in the housing market and threatening to prolong the
road to a robust real estate
Foreclosure Activity by
notices (NOD, LIS) were filed for the first time on a total of 77,733
U.S. properties in October, a 10 percent increase from September, but still
down 23 percent from October 2010. Default notices in states using the judicial
process (LIS) reached an 11-month high of 39,282 in October, a 16 percent
increase from the previous month, but still down 31 percent from October
Default notices increased more than 25 percent on a
month-over-month basis in several states, including Florida (28 percent),
Pennsylvania (50 percent) and Indiana (61 percent). Despite the sizable monthly
increases, default notices were down on a year-over-year basis in all three of
auctions (NTS, NFS) were scheduled on 85,321 U.S. properties in
October, up 8 percent from the previous month, but still down 38 percent from
October 2010. Scheduled auctions in states using the judicial foreclosure
process (NFS) reached an 11-month high of 25,941 in October, a 22 percent
increase from the previous month, but still down 43 percent from October
Scheduled auctions increased more than 35 percent on a
month-over-month basis in several states, including Florida (57 percent),
Minnesota (43 percent) and Illinois (38 percent), although scheduled auctions
in all three of those states were still down from October 2010.
repossessed a total of 67,624 U.S. properties (REO) in October, a 4 percent
increase from the previous month, but still a 27 percent decrease from October
2010. REO activity increased 40 percent or more on a month-over-month basis in
several states, including Michigan (40 percent), Oregon (45 percent), New
Jersey (48 percent), and Indiana (73 percent).
Nevada, California, Arizona post top state
Despite a 34 percent month-over-month
drop in foreclosure activity, Nevada
posted the nation’s highest state foreclosure rate for the 58th straight month
in October. One in every 180 Nevada housing units had a foreclosure filing
during the month, still more than three times the national average despite the
drop-off in activity. The month-over-month decrease in Nevada was driven by a
75 percent monthly decrease in new default notices, likely the result of a new
law that as of October requires foreclosing lenders to sign and record in
public records an affidavit with key information about any foreclosure. The
1,201 new defaults in Nevada in October was the lowest since June 2006, a
default notices increased 17 percent from the previous month to a
13-month high, helping the state post the nation’s second highest foreclosure
rate: one in every 243 housing units with a foreclosure filing in October. A total
of 29,240 default notices were reported in California in October, a 1 percent
increase from October 2010 — the first year-over-year increase in defaults in
California since November 2009.
posted the nation’s third highest state foreclosure rate in October: one in
every 259 housing units with a foreclosure filing during the month. Total
foreclosure activity in Arizona increased nearly 18 percent from the previous
month, but was still down 36 percent from October 2010.
sharp monthly increase in new default notices and scheduled auctions boosted
rate in Florida to fourth highest among the states, up from sixth
highest in September. A total of 15,234 new default notices were reported in
Florida in October, up 28 percent from the previous month and a 12-month high.
Scheduled auctions in Florida hit an 11-month high in October, with 10,655 reported
during the month — up 57 percent from September.
notices in Michigan also reached a 12-month high in October, increasing 13
percent from the previous month, and the state posted the nation’s fifth
highest foreclosure rate for the month: one in every 282 housing units with a
The top five states in terms of
foreclosure rate in October — Nevada, California, Arizona, Florida and Michigan
— accounted for 53 percent of the national total for the month.
states with foreclosure rates ranking among the top 10 were Georgia, Illinois,
Idaho, Oregon and Colorado.
Vegas knocked out of No. 1 spot for foreclosure
rates among metro areas
After 22 consecutive months with
the highest foreclosure rate among metropolitan areas with a population of
200,000 or more, Las Vegas dropped to No. 5 on the list in October thanks to a
36 percent decrease in foreclosure activity from the previous month. The
overall decrease in Las Vegas was caused primarily by an 80 percent drop in new
default notices from September to October. One in every 162 Las Vegas housing
units had a foreclosure filing in October, still more than three times the
With one in every 143 housing units with a
foreclosure filing in October, Stockton, Calif., took the top metro foreclosure
rate away from Las Vegas. Foreclosure activity in Stockton increased 10 percent
from the previous month, but was still down nearly 18 percent from October 2010.
New defaults in Stockton were up 20 percent from the previous month and up 9
percent from October 2010.
Five other California metro areas
had foreclosure rates that ranked among the top 10 in October. Modesto was
close behind Stockton at No. 2 (one in every 148 housing units with a
foreclosure filing), followed by Vallejo-Fairfield at No. 3 (one in every 150
housing units), Riverside-San Bernardino at No. 4 (one in every 155 housing
units), Sacramento at No. 7 (one in every 176 housing units), and Merced at No.
9 (one in every 200 housing units).
Other metro areas with
foreclosure rates in the top 10 were Saginaw, Mich., at No. 6 (one in every 174
housing units), Cape Coral-Fort Myers, Fla., at No. 8 (one in every 190 housing
units), and Orlando, Fla., at No. 10 (one in every 208 housing
The RealtyTrac U.S. Foreclosure Market
Report provides a count of the total number of properties with at least one
foreclosure filing entered into the RealtyTrac database during the month —
broken out by type of filing. Some foreclosure filings entered into the
database during the month may have been recorded in previous months. Data is
collected from more than 2,200 counties nationwide, and those counties account
for more than 90 percent of the U.S. population. RealtyTrac’s report
incorporates documents filed in all three phases of foreclosure:
Default — Notice
of Default (NOD) and Lis
Pendens (LIS); Auction — Notice of Trustee Sale
and Notice of Foreclosure Sale (NTS and NFS); and Real
Estate Owned, or REO
properties (that have been foreclosed on and repurchased by a bank).
The report does not count a property again if it receives the same type of
foreclosure filing multiple times within the estimated foreclosure timeframe
for the state where the property is
The RealtyTrac U.S.
Foreclosure Market Report is the result of a proprietary evaluation of
information compiled by RealtyTrac; the report and any of the information in
whole or in part can only be quoted, copied, published, re-published,
distributed and/or re-distributed or used in any manner if the user
specifically references RealtyTrac as the source for said report and/or any of
the information set forth within the
RealtyTrac (www.realtytrac.com) is the
leading online marketplace of foreclosure properties, with more than 2 million
default, auction and bank-owned listings from over 2,200 U.S. counties, along
with detailed property, loan and home sales data. Hosting more than 3 million
unique monthly visitors, RealtyTrac provides innovative technology solutions
and practical education resources to facilitate buying, selling and investing
in real estate. RealtyTrac’s foreclosure data has also been used by the Federal
Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S.
Treasury Department, and numerous state housing and banking departments to help
evaluate foreclosure trends and address policy issues related to
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