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Foreclosure Activity Continues Free-Fall in May

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Overall  Activity Down 33 Percent From May 2010 to 42-Month Low
    REOs Increase  in New York and Georgia, Auctions in Maryland and Illinois

IRVINE, Calif. – June 16, 2011 — RealtyTrac® (realtytrac.com),  the leading online marketplace for foreclosure properties, today released its  U.S. Foreclosure Market Report™ for May 2011, which shows foreclosure filings —  default notices, scheduled auctions and bank  repossessions — were reported on 214,927 U.S. properties in May, a 2  percent decrease from April and a 33 percent decrease from May 2010. The report  also shows one in every 605 U.S.  housing units received a foreclosure filing during the month of May.

“Second, while the inventory of properties in the  foreclosure process has declined steadily over the past six months — thanks in  large part to 16 consecutive months of year-over-year declines in new default  notices — the inventory of unsold bank-owned REOs increased in April and May  even as new REO activity slowed in both of those months,” Saccacio continued.  “That points to continued weak demand from buyers, making it tough for lenders  to unload their REO inventory. Even at a significantly lower level than a year  ago, the new supply of REOs exceeds the amount being sold each month.”

 

Foreclosure Activity by Type
Default  notices (NOD, LIS) were filed for the first time on a total of 58,797 U.S. properties  in May, a 7 percent decrease from the previous month and a 39 percent decrease  from May 2010. May’s total was the lowest number of monthly default notices  since December 2006 — a 53-month low.

Foreclosure  auctions (NTS, NFS) were scheduled for 89,251 U.S. properties in May, an increase  of 3 percent from the 31-month low hit in April, but still down 33 percent from  May 2010. May’s monthly increase followed eight straight monthly decreases in  scheduled foreclosure auctions.

Bank repossessions (REOs) decreased on a monthly  basis for the second straight month in May, with 66,879 U.S. properties  repossessed by lenders during the month — a 4 percent decrease from the  previous month and a 29 percent decrease from May 2010. Since the so-called  robo-signing controversy came to light in October 2010, REO activity has  followed a rollercoaster pattern, with five monthly decreases and three monthly  increases.

Non-judicial foreclosure activity accounts for two-thirds of national  total
  A total of 141,348 properties received foreclosure  filings in states where lenders primarily use the non-judicial  foreclosure process — nearly two-thirds of the national total. Overall  foreclosure activity in non-judicial foreclosure states was down 3 percent from  April and down 25 percent from May 2010.

Scheduled auctions in non-judicial foreclosure  states increased 2 percent on a month-over-month basis, led by a 16 percent  increase in California and 10 percent increases in Texas, Virginia and Michigan.

Although REO activity in non-judicial foreclosure  states overall was down 6 percent from the previous month, some non-judicial  foreclosure states posted substantial month-over-month increases in REO  activity, including Georgia, with a 79 percent increase, Virginia, with a 36  percent increase, and Michigan, with a 19 percent increase.

A total of 73,579 properties received foreclosure  filings in states where lenders primarily use the judicial  foreclosure process, virtually unchanged from the previous month but down  45 percent from May 2010.

Scheduled auctions increased 6 percent on a  month-over-month basis in judicial foreclosure states, with Oklahoma posting an  86 percent increase, Maryland posting a 56 percent increase and Illinois  posting a 47 percent increase.

REO activity in judicial foreclosure states increased  1 percent on a month-over-month basis, with New York posting a 97 percent  increase, New Jersey posting a 21 percent increase, Wisconsin posting a 20  percent increase and Indiana posting an 18 percent increase.

Nevada, Arizona, California post top state foreclosure rates
Nevada posted  the nation’s highest state foreclosure rate for the 53rd straight  month in May, with one in every 103 housing units receiving a foreclosure  filing during the month. Nevada REOs in May were down 21 percent from the  record high hit in April, while default notices (NOD) increased 8 percent from  the previous month and scheduled auctions (NTS) decreased 1 percent from the  previous month.

Scheduled auctions  in Arizona (NTS) increased 4 percent in May from April, helping the state  maintain the nation’s second highest foreclosure rate — one in every 210 Arizona housing units  received a foreclosure filing in May. Arizona REO activity in May was down 8  percent from the previous month but virtually unchanged from May 2010.

California posted the nation’s third highest state  foreclosure rate, with one in every 259 housing units receiving a foreclosure  filing during the month. Scheduled auctions  in California (NTS) increased 16 percent from the previous month, while  default notices (NOD) were down 16 percent to a 31-month low and REOs decreased  25 percent from the previous month.

Michigan posted  the nation’s fourth highest state foreclosure rate in May, with one in every  311 housing units receiving a foreclosure filing during the month, and Utah  posted the nation’s fifth highest state foreclosure rate, with one in every 365  housing units receiving a foreclosure filing during the month.

Other states with  foreclosure rates ranking among the top 10 were Georgia,  Idaho, Florida,  Illinois and Colorado. 

Five states account for more than half of U.S.  foreclosure activity
Five states accounted for  51 percent of U.S.  foreclosure activity in May, led by California,  where 51,906 properties received a foreclosure filing during the month.

A total of 19,192 Florida properties  received a foreclosing filing in May, the second highest state total despite a  62 percent decrease from May 2010. Florida initial  default notices (LIS) decreased 10 percent from the previous month, but  scheduled auctions (NFS) and REOs in Florida  both increased on a monthly basis.

A total of 14,614  Michigan properties received a foreclosure filing in May, the third highest  state total, followed by Arizona, with 13,122 properties receiving a  foreclosure filing during the month, and Nevada, with 11,039 properties  receiving a foreclosure filing during the month.

Other states with  foreclosure activity totals among the nation’s 10 highest in May were Illinois (10,574), Georgia  (10,503), Texas (9,055), Ohio  (8,379), and Wisconsin  (4,660).

Rust Belt city breaks into Top 10 metro foreclosure  rates dominated by Sun Belt
Las Vegas continued to  post the nation’s highest foreclosure rate among metropolitan areas with a  population of 200,000 or more, with one in every 89 housing units receiving a  foreclosure filing in May — more than six times the national average.

The Reno-Sparks metro  area in Nevada  also continued to post a foreclosure rate among the top 10 highest, at No. 5  with one in every 158 housing units receiving a foreclosure filing in May.

Six California cities  posted foreclosure rates in the top 10, led by Stockton at No. 2 (one in every  139 housing units receiving a foreclosure filing during the month),  Vallejo-Fairfield at No. 3 (one in every 140 housing units), and Modesto at No.  4 (one in every 154 housing units). Other California  cities in the top 10 were Bakersfield at No. 7  (one in every 169 housing units), Riverside-San Bernardino-Ontario at No. 8  (also one in every 169 housing units), and Merced at No. 10 (one in every 193 housing units).

With one in every 165  housing units receiving a foreclosure filing in May, the  Phoenix-Mesa-Scottsdale metro area in Arizona  posted the nation’s sixth highest metro foreclosure rate.

The Flint, Mich.,  metro area broke into the top 10 thanks to a 106 percent month-over-month  increase in foreclosure activity — although the metro area’s foreclosure  activity was still down slightly from May 2010. One in every 182 Flint housing units  received a foreclosure filing in May, ranking No. 9 among the nation’s metro  areas.

Report methodology
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: DefaultNotice  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 located.

Report License                                                                              
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.

About RealtyTrac Inc.
RealtyTrac (http://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 foreclosures.

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Order Customized Reports
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 historically.

Media Contacts:
Michelle Schneider
949.502.8300 Ext. 139
michelle.schneider@realtytrac.com

Christine Stricker
949.502.8300 Ext. 268
christine.stricker@realtytrac.com

Order Custom Data:
Data Sales Department
800.913.0439
datasales@realtytrac.com


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