Activity Inches Up After Three
Straight Quarterly Decreases Following
Foreclosure Processing and Sales Timelines Hit Record
IRVINE, Calif. – Oct. 13, 2011
— RealtyTrac® (www.realtytrac.com),
the leading online marketplace for foreclosure properties, today released
its U.S. Foreclosure Market Report™ for the third quarter of 2011,
which shows foreclosure filings — default notices, scheduled auctions
repossessions — were reported on 610,337 properties in the third
quarter, an increase of less than 1 percent from the previous quarter
and a decrease of 34 percent from the third quarter of 2010. The
report shows one in every 213 U.S. housing units with a foreclosure
filing during the quarter.
Foreclosure filings were reported
on 214,855 U.S. properties in September, a 6 percent decrease from
August and a 38 percent decrease from September 2010.
September marked the 12th straight month where foreclosure activity
decreased on a year-over-year basis.
foreclosure activity has been mired down since October of last year,
when the robo-signing controversy sparked a flurry of investigations
into lender foreclosure procedures and paperwork,” said James
Saccacio, chief executive officer of RealtyTrac. “While foreclosure activity
in September and the third quarter continued to register well below
levels from a year ago, there is evidence that this temporary
downward trend is about to change direction, with foreclosure
activity slowly beginning to ramp back up.
foreclosure activity increased marginally from the previous quarter,
breaking a trend of three consecutive quarterly decreases that
started in the fourth quarter of 2010,” Saccacio continued. “This
marginal increase in overall foreclosure activity was fueled by a 14
percent jump in new default notices, indicating that lenders are
cautiously throwing more wood into the foreclosure fireplace after spending
months trying to clear the chimney of sloppily filed
Foreclosure Processing and Sales
Timelines Hit Record Highs
U.S. properties foreclosed
in the third quarter took an average of 336 days to complete the
foreclosure process, up from 318 days in the second quarter and the
highest number of days going back to the first quarter of
New York properties foreclosed in the third
quarter took an average of 986 days to complete the foreclosure
process, the longest of any state and a record high for the state.
The second longest average foreclosure process was in New Jersey, at
974 days, and the third longest average foreclosure process was in
Florida, at 749 days.
Texas registered the shortest average
foreclosure process of any state, at 86 days, down from 92 days in
the second quarter but still up from 53 days in the third quarter of
2007. Kentucky properties foreclosed in the third quarter took an
average of 94 days to complete the foreclosure process, the second
shortest among the states, and Virginia properties foreclosed in the
third quarter took an average of 102 days to complete the foreclosure
process, the third shortest among the states.
time to sell foreclosures also hit a record high in the third quarter.
Properties in the foreclosure process that sold during the third
quarter (usually short sales) took an average of 318 days to sell
after entering the foreclosure process, up from 245 days in the
previous quarter. Bank-owned properties sold in the third quarter took
an average of 193 days to sell after being repossessed by the bank,
up from 178 days in the second
Foreclosure Activity by
notices (NOD, LIS) were filed on 195,878 U.S. properties in the third
quarter, up 14 percent from the previous quarter but down 27 percent
from the third quarter of 2010. In September, default notices were
filed on 70,710 U.S. properties, down 10 percent from a nine-month
high in August and down 31 percent from September
Some of the states with the biggest quarterly
increases in default notices included Massachusetts, with a 65
percent quarter-over-quarter increase; New Jersey, with a 29 percent
increase; Florida, with a 24 percent increase; Ohio, with a 21
percent increase; and California, also with a 21 percent
auctions (NTS, NFS) were scheduled for the first time for 217,929
U.S. properties in the third quarter, down 6 percent from the
previous quarter and down 41 percent from the third quarter of 2010.
In September, foreclosure auctions were scheduled for the first time
for 79,098 U.S. properties, down 6 percent from August and down 45
percent from September 2010.
Lenders foreclosed on 196,530
U.S. properties during the third quarter, a 4 percent decrease from
the previous quarter and a 32 percent decrease from the third quarter
of 2010. In September, lenders foreclosed on 65,047 U.S. properties,
an increase of less than 1 percent from August but down 36 percent
from September 2010, when REO activity hit a monthly peak of 102,134
A handful of states posted significant
quarterly increases in REO activity in the third quarter, bucking the
national trend. Those states included Massachusetts, with a 62
percent quarter-over-quarter increase; Oregon, with a 47 percent
increase; Georgia, with a 42 percent increase; and Illinois, with a
27 percent increase.
Arizona post top state foreclosure
posted the nation’s highest state foreclosure rate — one in every 44
housing units with a foreclosure filing in the third quarter. Overall
Nevada foreclosure activity decreased from the previous quarter
thanks to decreases in scheduled auctions and REOs, but default
notices in Nevada increased 15 percent from the second quarter to the
third quarter — boosted in part by a 16 percent month-over-month
increase in defaults in September.
default activity also increased on a quarterly basis, and the state
documented the nation’s second highest foreclosure rate — one in
every 88 housing units with a foreclosure filing during the
One in every 93 Arizona housing units had
a foreclosure filing in the third quarter, the nation’s third highest
state foreclosure rate. Arizona
foreclosure activity dropped 25 percent from the previous
quarter and was down nearly 40 percent from the third quarter of
Other states with foreclosure rates ranking
among the top 10 in the third quarter were Georgia, Florida, Utah,
Michigan, Idaho, Illinois and Colorado.
Foreclosure Activity Totals
153,051 properties with foreclosure filings in the third quarter was
the highest total of any state and accounted for one in every four
properties with foreclosure filings nationwide during the quarter.
accounted for one in every 9 properties with foreclosure filings
nationwide during the third quarter, with a total of 67,886 — the
second highest of any state and an increase of 15 percent from the
previous quarter. The quarterly increase was driven by a 24 percent
increase in new default notices and a 14 percent increase in bank
repossessions. Despite the quarterly increase, Florida
foreclosure activity in the third quarter was still down 57
percent from the third quarter of 2010.
percent quarterly increase in overall foreclosure activity — caused largely
by a 42 percent increase in REOs — helped Georgia secure the nation’s
third highest overall foreclosure activity total during the third
quarter. There were a total of 33,637 Georgia properties with
foreclosure filings during the quarter, still down 18 percent from
the third quarter of 2010.
Other states with
foreclosure activity totals among the nation’s 10 highest were
Illinois (32,297), Michigan (31,179), Arizona (29,701), Texas (27,860),
Nevada (25,900), Ohio (24,166) and Colorado
Foreclosure Starts Up in 21 of 25
Metros with Highest Foreclosure
Foreclosure filings initiating the
foreclosure process (either defaults or scheduled auctions, depending
on the state foreclosure process) increased on a quarterly basis in
the third quarter in 21 of the 25 metro areas with the highest
foreclosure rates among metropolitan areas with a population of
200,000 or more.
The only top 20 metro areas where
foreclosure starts decreased from the previous quarter were the
Arizona cities of Phoenix and Prescott, along with Greeley, Colo., and
California cities accounted
for 15 of the top 25 metro foreclosure rates, led by
Vallejo-Fairfield at No. 2, with one in every 51 housing units with a
foreclosure filing during the third quarter. Not far behind were Stockton
at No. 3 (one in 52 housing units), Modesto at No. 4 (one in 53
housing units), and Riverside-San Bernardino at No. 5 (one in 56
Nevada cities accounted for two of
the top 25 metro foreclosure rates, led by Las Vegas at No. 1, with
one in every 39 housing units with a foreclosure filing during the
third quarter. Reno-Sparks, Nev., ranked No. 9, with one in every 67
housing units with a foreclosure filing.
Florida cities also posted foreclosure rates in the top 25: Cape
Coral-Fort Myers at No. 15, with one in every 92 housing units with a
foreclosure filing in the third quarter; and Miami at No. 23, with
one in every 108 housing units with a foreclosure
The two remaining cities in the top 25 were
Atlanta at No. 14 (one in every 89 housing units), and Detroit at No.
22 (one in every 108 housing units).
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 and quarter — broken out by type of filing. Some
foreclosure filings entered into the database during a month or
quarter may have been recorded in previous months or quarters. 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). For the quarterly report, if more than one foreclosure
document is received for a property during the quarter, only the most
recent filing is counted in the report. Both the quarterly and
monthly reports check if the same type of document was filed against
a property previously. If so, and if that previous filing occurred
within the estimated foreclosure timeframe for the state where the
property is located, the report does not count the property in the
current month or quarter.
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 foreclosures.For current news and information regarding foreclosure-related issues and
trends, visit our blog at www.ForeclosurePulse.com.
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.
949.502.8300, ext. 139