Foreclosure Activity Exceeds 200,000 for First Time in Three
Foreclosure Starts Increase
Annually for First Time Since January
IRVINE, Calif. – June 14, 2012
— RealtyTrac® (www.realtytrac.com), the
leading online marketplace for foreclosure properties, today released its U.S.
Foreclosure Market Report™ for May 2012, which shows foreclosure filings —
default notices, scheduled auctions and bank
repossessions — were reported on 205,990 U.S. properties in May, an
increase of 9 percent from April but still down 4 percent from May 2011. The
report also shows one in every 639 U.S. housing units with a foreclosure filing
during the month.
“U.S. foreclosure activity has now
decreased on a year-over-basis for 20 straight months including May, but the
jump in May foreclosure starts shows that it’s going to be a bumpy ride down to
the bottom of this foreclosure cycle,” said Brandon Moore, CEO of RealtyTrac.
“Based on the rise in pre-foreclosure sales we’ve seen so far this year, a
higher percentage of these new foreclosure starts will likely end up as short
sales or auction sales to third parties rather than bank repossessions going forward.
While pre-foreclosure sales have less of a negative impact on home values than
bank-owned sales, they still represent a discounted sale where a distressed
homeowner is losing his or her home.
“Disposing of distressed
homes by pre-foreclosure sale can also benefit lenders and servicers because
pre-foreclosure homes sell at a higher average price point than bank-owned
homes,” Moore continued. “Our first quarter foreclosure sales report showed
that the average price of a pre-foreclosure home was more than $27,000 higher
than the average price of a bank-owned home — which quickly adds up given that
there have been an average of 1.6 million nationwide foreclosure starts per
year for the past five years.
“More banks are now recognizing
that treating the problem of delinquent mortgages with short sales rather than
bank repossessions can help them minimize their losses and also avoid taking on
more REOs, which they then have to manage, maintain and market for
High-level findings from the
- Foreclosure activity rose
back up above the 200,000 level in May after two consecutive months below
- Foreclosure starts
nationwide increased on an annual basis after 27 consecutive months of
states combined posted a 26 percent year-over-year increase in overall
foreclosure activity while non-judicial states combined posted a 20 percent
year-over-year decrease in foreclosure activity.
Foreclosure starts increased on a year-over-year basis in 17 of the 26 judicial
states and in 16 of the 24 non-judicial
- Georgia leapfrogged past
Arizona, Florida, California and Nevada to post the nation’s highest state
foreclosure rate in May, the first time since February 2006 that Georgia’s
foreclosure rate has ranked highest among the
starts increase 12 percent to highest level since October
Foreclosure starts — default
notices or scheduled foreclosure
auctions, depending on the state — were filed on 109,051 U.S.
properties in May, a 12 percent increase from April and a 16 percent increase
from May 2011.
Foreclosure starts increased annually in 33
out of the 50 states — 17 states with the judicial process and 16 states with
the non-judicial process. States with some of the biggest annual increases in
foreclosure starts included the judicial foreclosure states of New Jersey (118
percent), Pennsylvania (97 percent), Florida (83 percent), Massachusetts (60
percent), New York (59 percent), South Carolina (43 percent), Ohio (32 percent)
and Illinois (28 percent), and the non-judicial foreclosure states of Tennessee
(165 percent), Texas (51 percent), Missouri (35 percent), Georgia (30 percent),
and Michigan (24 percent).
increase from previous month, still down from year ago
three straight monthly decreases to a 49-month low in April, bank repossessions
(REOs) increased 7 percent on a monthly basis in May. Lenders completed the
foreclosure process on 54,844 U.S. properties during the month, still down 18
percent from May 2011.
REO activity increased on an annual
basis in 17 states in May, including North Carolina (66 percent), Illinois (65
percent), Massachusetts (59 percent), Florida (32 percent), Georgia (31
percent), and Ohio (26 percent).
with annual decreases in REO activity included Nevada (68 percent), Arizona (43
percent), Michigan (42 percent), Colorado (42 percent), California (27
percent), Minnesota (24 percent), and Indiana (17
Georgia posts highest state
foreclosure rate for first time since February 2006
foreclosure activity in May increased 33 percent from the previous
month and 30 percent from a year ago, helping the state post the nation’s
highest foreclosure rate for the month — one in every 300 housing units with a
foreclosure filing. Georgia’s foreclosure rate leapfrogged the foreclosure
rates in Arizona, Florida, California and Nevada, all of which posted higher
foreclosure rates than Georgia in the previous month.
dropping to a 53-month low in April, Arizona
foreclosure activity bounced 24 percent higher in May, helping the
state document the nation’s second highest foreclosure rate for the month — one
in every 305 housing units with a foreclosure filing. Arizona foreclosure
activity for the month was still down 29 percent from May 2011.
Despite a 66 percent drop in foreclosure activity compared
to a year ago, Nevada documented the nation’s third highest state foreclosure
rate in May — one in every 313 housing units with a foreclosure filing.
foreclosure activity decreased 19 percent from May 2011, but the
state still posted the nation’s fourth highest foreclosure rate for the month —
one in every 324 housing units with a foreclosure
foreclosure activity increased 54 percent from May 2011 and the state
documented the nation’s fifth highest foreclosure rate (one in every 325
housing units), while Florida
foreclosure activity increased 38 percent from May 2011 and the state
documented the nation’s sixth highest foreclosure rate (one in every 340
Other states with foreclosure rates ranking
among the top 10 were Ohio (one in 495 housing units with a foreclosure
filing), Michigan (one in 519), South Carolina (one in 539), and Utah (one in
Riverside, Atlanta, Phoenix post top
foreclosure rates among 20 largest metros
Riverside-San Bernardino metro in Southern California posted the highest
foreclosure rate among the nation’s 20 largest metropolitan statistical areas
by population. One in every 179 housing units in the Riverside-San Bernardino
metro had a foreclosure filing in May — more than 3.5 times the national average.
one in every 224 housing units with a foreclosure filing, Atlanta posted the
second highest foreclosure rate among the 20 largest metro areas, and with one
in every 245 housing units with a foreclosure filing, Phoenix posted the third
highest foreclosure rate.
A 56 percent year-over-year
increase in foreclosure activity helped boost Chicago’s foreclosure rate to
fourth highest among the 20 largest metro areas, and a 111 percent
year-over-year increase in foreclosure activity helped the Tampa-St.
Petersburg-Clearwater metro area document the fifth highest
foreclosure rate among large metro areas.
Foreclosure Activity in 20 Largest
U.S. Metros – May 2012
|Metro||May 2012 Properties with Foreclosure
X Housing Units (Rate)||%Change from April 2012||%Change from May
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’s 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 report.
Detailed and historical foreclosure
data used to create the above report may be purchased through the
RealtyTrac Data Licensing Department at 949.502.8300 Ext. 158. Aggregate data
is available at the state, metro, county and zip code levels dating back to
2005, and address-level foreclosure records are also available
RealtyTrac (www.realtytrac.com) is the
leading online marketplace of foreclosure properties, with more than 1.5
million default, auction and bank-owned listings from over 2,200 U.S. counties,
along with detailed property, loan and home sales data. Hosting millions of
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,
private companies and academic institutions to help evaluate foreclosure trends
and address policy issues related to foreclosures.
Jennifer von Pohlmann