Foreclosure Home News and Opinion 2008 Year-End Foreclosure Market Report

2008 Year-End Foreclosure Market Report

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Nearly 3.2 Million Foreclosure Filings on More Than 2.3 Million Properties Reported

A total of 3,157,806 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 2,330,483 U.S. properties during 2008, an 81 percent increase in total properties from 2007 and a 225 percent increase in total properties from 2006, according to the RealtyTrac U.S. Foreclosure Market Report. The report also shows that 1.84 percent of all U.S. housing units (one in 54) received at least one foreclosure filing during the year, up from 1.03 percent in 2007.

Foreclosure filings were reported on 303,410 U.S. properties in December, up 17 percent from the previous month and up nearly 41 percent from December 2007. Despite the spike in December, foreclosure activity for the fourth quarter was down nearly 4 percent from the previous quarter but still up nearly 40 percent from the fourth quarter of 2007.

“State legislation that slowed down the onset of new foreclosure activity clearly had an effect on fourth quarter numbers overall, but that effect appears to have worn off by December,” said James J. Saccacio, chief executive officer of RealtyTrac. “The big jump in December foreclosure activity was somewhat surprising given the moratoria enacted by both Freddie Mac and Fannie Mae, along with programs from some of the major lenders and loan servicers aimed at delaying foreclosure actions against distressed homeowners.

“Clearly the foreclosure prevention programs implemented to-date have not had any real success in slowing down this foreclosure tsunami. And the recent California law, much like its predecessors in Massachusetts and Maryland, appears to have done little more than delay the inevitable foreclosure proceedings for thousands of homeowners.”

The California law (SB1137), which required lenders to provide written notice of their intent to initiate foreclosure proceedings 30 days prior to issuing a notice of default (NOD), resulted in a reduction of NODs from 44,278 in August to 21,665 in September. Notice of Default filings then surged by 122 percent, to over 42,000, in December. Similar patterns have occurred in other states, such as Massachusetts and Maryland, where similar types of foreclosure prevention legislation has been enacted.

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Nevada, Florida, Arizona post top state foreclosure rates in 2008
More than 7 percent of Nevada housing units (one in 14) received at least one foreclosure notice in 2008, giving it the nation’s highest state foreclosure rate for the year. A total of 77,693 Nevada properties received a foreclosure filing during the year, an increase of nearly 126 percent from 2007 and an increase of nearly 530 percent from 2006.

Florida registered the nation’s second highest state foreclosure rate in 2008, with 4.52 percent of its housing units (one in 22) receiving at least one foreclosure filing during the year, and Arizona registered the nation’s third highest state foreclosure rate, with 4.49 percent of its housing units (one in 22) receiving at least one foreclosure filing during the year.

Other states with Top 10 foreclosure rates for 2008 were California, Colorado, Michigan, Ohio, Georgia, Illinois and New Jersey.

California, Florida, Arizona post highest 2008 foreclosure totals
A total of 523,624 California properties received a foreclosure filing in 2008, the nation’s highest state total. Foreclosure activity in the state increased nearly 110 percent from 2007 and nearly 498 percent from 2006.

With 385,309 properties receiving a foreclosure filing in 2008, Florida documented the second highest state total. Florida foreclosure activity increased 133 percent from 2007 and nearly 412 percent from 2006.

Arizona’s 2008 total of 116,911 properties receiving a foreclosure filing was third highest among the states. Foreclosure activity in Arizona increased 203 percent from 2007 and 655 percent from 2006.

Other states with Top 10 totals for 2008 were Ohio, Michigan, Illinois, Texas, Georgia, Nevada and New Jersey.

Sunbelt cities plus Detroit land on top 10 metro foreclosure rates list
With 9.46 percent of its housing units (one in 11) receiving a foreclosure filing during the year, Stockton, Calif., registered the highest foreclosure rate among the nation’s 100 largest metropolitan areas in 2008. Other California cities in the top 10 were Riverside-San Bernardino at No. 3 (8.02 percent, or one in 12 housing units); Bakersfield and No. 4 (6.17 percent, or one in 16 housing units); and Sacramento at No. 9 (5.20 percent, or one in 19 housing units).

Las Vegas documented the second highest metro foreclosure rate in 2008, with 8.89 percent of its housing units (one in 11) receiving a foreclosure filing during the year.

More than 6 percent of Phoenix housing units (one in 17) received a foreclosure filing during the year, giving the city the fifth highest metro foreclosure rate in 2008.

The foreclosure rate in Fort Lauderdale, Fla., ranked No. 6, with 5.95 percent of the metro area’s housing units (one in 17) receiving a foreclosure filing in 2008. Other Florida cities in the top 10 were Orlando at No. 7 (5.48 percent, or one in 18 housing units) and Miami at No. 8 (5.21 percent, or one in 19 housing units).

With 4.52 percent of its housing units (one in 22) receiving a foreclosure filing during the year, Detroit registered the tenth highest metro foreclosure rate in 2008.

Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the year at the state and national level. Data is also available at the individual county level. 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). If more than one foreclosure document is filed against a property during the year, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month or quarter. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

 

U.S. Foreclosure Market Data by State – 2008

 

Rate Rank State Name Total Foreclosure Filings Total Properties with Filings %Change from 2007 %Change from 2006 %Housing Units (foreclosure rate)

--

U.S.

3,157,806

2,330,483

81.24

224.80

1.84

43

Alabama

8,436

7,764

39.34

184.19

0.37

31

Alaska

2,265

1,946

46.10

96.76

0.70

3

Arizona

152,621

116,911

203.13

655.04

4.49

23

Arkansas

16,611

14,277

122.87

198.06

1.12

4

California

837,665

523,624

109.86

497.91

3.97

5

Colorado

66,795

50,396

27.90

61.41

2.41

15

Connecticut

25,510

21,925

84.87

570.49

1.53

33

Delaware

2,998

2,516

151.85*

701.27*

0.66

 

District of Columbia

4,631

4,182

438.22*

3245.60*

1.48

2

Florida

501,396

385,309

133.11

411.68

4.52

8

Georgia

116,225

85,254

44.36

117.07

2.20

34

Hawaii

3,346

3,185

229.71

489.81

0.64

19

Idaho

11,272

8,512

133.85

302.08

1.38

9

Illinois

115,063

99,488

54.70

126.01

1.91

11

Indiana

61,141

45,937

64.18

113.59

1.67

40

Iowa

6,405

5,385

31.25

135.77

0.41

36

Kansas

7,983

6,218

155.46

179.96

0.51

42

Kentucky

8,820

7,244

41.90

45.46

0.38

41

Louisiana

7,837

7,129

79.66

111.42

0.39

38

Maine

3,171

2,851

896.85*

5602.00*

0.41

18

Maryland

41,582

32,338

71.29

945.18

1.41

14

Mass.

53,797

44,342

150.00

577.08

1.64

6

Michigan

145,365

106,058

21.61

107.89

2.35

26

Minnesota

23,716

20,282

75.50

336.74

0.89

46

Mississippi

2,364

2,293

62.74

181.35

0.18

20

Missouri

42,054

31,254

33.04

139.11

1.19

44

Montana

1,220

1,246

8.35

32.55

0.29

39

Nebraska

3,326

3,190

-12.27

25.84

0.41

1

Nevada

123,989

77,693

125.74

529.50

7.29

22

New Hampshire

8,018

6,636

436.03*

5430.00*

1.13

10

New Jersey

69,612

62,514

101.20

186.84

1.80

37

New Mexico

4,543

3,727

24.48

38.29

0.44

35

New York

55,641

50,032

29.32

129.23

0.63

27

North Carolina

41,750

33,819

16.21

153.14

0.84

47

North Dakota

391

371

48.40

148.99

0.12

7

Ohio

146,099

113,570

26.22

155.40

2.25

29

Oklahoma

16,059

12,465

50.98

32.86

0.78

21

Oregon

25,049

18,001

112.75

168.67

1.13

32

Pennsylvania

42,949

37,210

127.18

68.88

0.68

17

Rhode Island

7,334

6,583

258.16*

1525.43*

1.46

30

South Carolina

16,136

14,995

253.07*

220.41*

0.76

48

South Dakota

405

402

1575.00*

793.33*

0.11

12

Tennessee

51,496

44,153

70.38

127.87

1.65

24

Texas

129,201

96,157

13.84

14.96

1.04

13

Utah

18,657

14,836

99.46

68.25

1.65

50

Vermont

124

137

372.41*

705.88*

0.04

16

Virginia

67,695

49,011

200.55

1746.68*

1.52

25

Washington

32,271

26,058

71.61

116.64

0.97

49

West Virginia

687

685

48.91

170.75

0.08

28

Wisconsin

25,164

19,695

62.33

249.02

0.78

45

Wyoming

921

677

90.17

165.49

0.28

 

 

 

Top 100 U.S. Metro Foreclosure Market Data – 2008

 

Rate Rank
State Metro Name Total Properties with Filings %Housing Units (foreclosure rate) %Change from 2007

1

CA

STOCKTON

21,127

9.46

99.16

2

NV

LAS VEGAS/PARADISE

67,223

8.89

121.31

3

CA

RIVERSIDE/SAN BERNARDINO

112,284

8.02

117.02

4

CA

BAKERSFIELD

16,208

6.17

115.42

5

AZ

PHOENIX/MESA

97,684

6.02

220.77

6

FL

FORT LAUDERDALE

47,387

5.95

127.81

7

FL

ORLANDO

46,843

5.48

195.84

8

FL

MIAMI

49,697

5.21

96.46

9

CA

SACRAMENTO

39,876

5.20

67.74

10

MI

DETROIT/LIVONIA/DEARBORN

38,106

4.52

-7.67

11

FL

SARASOTA/BRADENTON/VENICE

17,256

4.50

153.58

12

CA

FRESNO

12,571

4.20

102.50

13

FL

TAMPA/ST PETERSBURG/CLEARWATER

53,630

4.14

122.66

14

CA

OAKLAND

38,797

4.09

99.34

15

CA

SAN DIEGO

44,931

3.99

122.24

16

FL

PALM BEACH

23,399

3.71

96.33

17

GA

ATLANTA/SANDY SPRINGS/MARIETTA

67,007

3.26

33.29

18

TN-MS-AR

MEMPHIS

17,245

3.21

52.73

19

CO

DENVER/AURORA

32,920

3.20

23.61

20

CA

VENTURA

8,422

3.11

94.01

21

CA

ORANGE

31,300

3.06

150.38

22

FL

JACKSONVILLE

17,025

2.99

78.46

23

DC-MD-VA-WV

WASHINGTON/ARLINGTON/ALEXANDRIA

50,148

2.97

160.79*

24

OH

CLEVELAND/LORAIN/ELYRIA/MENTOR

27,693

2.94

-0.56

25

MI

WARREN/FARMINGTON HILLS/TROY

30,817

2.92

42.63

26

CA

LOS ANGELES/LONG BEACH

96,974

2.89

113.53

27

IN

INDIANAPOLIS

20,316

2.76

39.24

28

OH

AKRON

8,259

2.69

16.60

29

OH

TOLEDO

7,957

2.67

38.24

30

OH

COLUMBUS

19,489

2.54

40.99

31

IL

LAKE/KENOSHA

6,323

2.52

70.06

32

CA

SAN JOSE/SUNNYVALE/SANTA CLARA

15,633

2.49

153.25

33

IL

CHICAGO

77,226

2.49

53.38

34

OH

DAYTON

9,231

2.43

18.16

35

NJ

NEWARK

19,607

2.33

123.57

36

MA

ESSEX

6,538

2.21

190.45

37

AZ

TUCSON

9,043

2.16

113.33

38

WA

TACOMA

6,669

2.16

114.64

39

IN

GARY

6,032

2.12

93.71

40

MA

WORCESTER

6,344

2.02

105.04

41

NJ

CAMDEN

9,026

1.87

164.30

42

OH-KY-IN

CINCINNATI

16,731

1.85

27.53

43

CT

NEWHAVEN/MILFORD

6,314

1.81

66.60

44

MA

BOSTON/QUINCY

13,332

1.77

161.10

45

MO-IL

ST LOUIS

21,645

1.77

40.15

46

UT

SALT LAKE CITY

6,628

1.72

79.52

47

CT

BRIDGEPORT/STAMFORD/NORWALK

5,874

1.68

140.84

48

WI

MILWAUKEE/WAUKESHA/WST ALLIS

10,181

1.57

55.94

49

MO-KS

KANSAS CITY

13,609

1.56

35.06

50

MA

SPRINGFIELD

4,331

1.54

118.19

51

TX

HOUSTON/BAYTOWN/SUGARLAND

31,981

1.52

28.35

52

TN

NASHVILLE/DAVIDSON

9,434

1.51

77.97

53

TX

FORT WORTH/ARLINGTON

11,540

1.50

-6.14

54

AR

LITTLE ROCK/NORTH LITTLE ROCK

4,336

1.49

60.47

55

TX

DALLAS

22,992

1.49

-7.74

56

RI

PROVIDENCE/NEW BEDFORD

6,583

1.46

257.97

57

NC-SC

CHARLOTTE/GASTONIA

9,802

1.45

3.99

58

NJ

EDISON

13,399

1.44

73.49

59

MN-WI

MINNEAPOLIS/ST PAUL/BLOOMINGTON

18,450

1.41

70.86

60

MD

BETHESDA/FREDERICK/GAITHERSBURG

6,098

1.37

103.33

61

CT

HARTFORD

6,305

1.29

70.45

62

NC

GREENSBORO/HIGHPOINT

3,935

1.29

27.84

63

MA

CAMBRIDGE/NEWTON/FRAMINGHAM

7,585

1.28

161.01

64

SC

CHARLESTON

3,501

1.28

317.28*

65

OR-WA

PORTLAND/VANCOUVER/BEAVERTON

10,684

1.22

106.97

66

OK

TULSA

4,777

1.22

35.25

67

SC

GREENVILLE

3,100

1.17

1355.40*

68

TN

KNOXVILLE

3,542

1.17

95.37

69

NY

POUGHKEEPSIE/NEWBURGH/MIDDLETOWN

2,826

1.16

330.79*

70

TX

SAN ANTONIO

8,033

1.09

4.90

71

NC

RALEIGH/CARY

4,444

1.09

14.42

72

MD

BALTIMORE/TOWSON

11,776

1.07

47.14

73

VA

RICHMOND

5,159

1.03

468.17*

74

NY

SUFFOLK/NASSAU

9,984

1.00

2.93

75

CA

SAN FRANCISCO

7,168

0.98

105.68

76

LA

NEW ORLEANS

4,382

0.98

89.04

77

PA

PHILADELPHIA

15,659

0.97

98.24

78

OK

OKLAHOMA CITY

4,977

0.97

22.77

79

VA-NC

NORFOLK/VIRGINIA BEACH/NEWPORT NEWS

5,662

0.95

207.55*

80

TX

AUSTIN/ROUND ROCK

5,737

0.94

11.05

81

PA

PITTSBURGH

10,013

0.91

147.85

82

SC

COLUMBIA

2,704

0.89

181.37*

83

NY

ROCHESTER

3,825

0.87

12.37

84

WA

SEATTLE/BELLEVUE/EVERETT

9,239

0.86

84.19

85

DE-MD-NJ

WILMINGTON

2,347

0.84

131.92

86

TX

MCALLEN/EDINBURG/PHARR

1,982

0.83

549.84*

87

KY-IN

LOUISVILLE

4,285

0.79

34.03

88

NM

ALBUQUERQUE

2,688

0.77

21.24

89

NE-IA

OMAHA/COUNCIL BLUFFS

2,613

0.76

-13.51

90

NY

BUFFALO/CHEEKTOWAGA/TONAWANDA

3,842

0.74

73.85*

91

NY-NJ

NEW YORK/WAYNE/WHITE PLAINS

31,165

0.71

38.09

92

KS

WICHITA

1,698

0.67

156.50

93

NY

ALBANY/SCHENECTADY/TROY

2,416

0.64

151.67

94

PA

SCRANTON/WILKES/BARRE/HAZLETON

1,620

0.63

136.50

95

TX

EL PASO

1,408

0.56

12.01

96

PA

ALLENTOWN/BETHLEHEM/EASTON

1,553

0.50

195.25

97

HI

HONOLULU

1,647

0.50

218.57

98

AL

BIRMINGHAM/HOOVER

2,163

0.47

-8.00

99

NY

SYRACUSE

1,028

0.36

182.42

100

LA

BATON ROUGE

1,107

0.35

34.51

 

*Actual increase may not be as high due to data collection changes or improvements

 


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