U.S. FORECLOSURE ACTIVITY INCREASES 7 PERCENT IN AUGUST

Scheduled Foreclosure Auctions Post First Annual Increase Since November 2010;
Foreclosure Starts Up 12 Percent From Previous Month, REOs Up 2 Percent;
Top Five State Foreclosure Rates in Florida, Nevada, Maryland, New Jersey, Georgia

IRVINE, Calif. – Sept. 11, 2014 — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released its U.S. Foreclosure Market Report™ for August 2014, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 116,913 U.S. properties in August, an increase of 7 percent from the previous month but still down 9 percent from a year ago — the smallest decrease in the last 47 consecutive months of year-over-year declines in U.S. foreclosure activity.

A total of 51,192 U.S. properties were scheduled for foreclosure auction during the month, down 1 percent from the previous month but up 1 percent from a year ago — the first annual increase in scheduled foreclosure auctions following 44 consecutive months of annual decreases. Scheduled foreclosure auctions in judicial foreclosure states where foreclosures are processed through the court system increased 5 percent from a year ago.

“The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets,” said Daren Blomquist, vice president at RealtyTrac. “The annual increase in foreclosure auctions — the first since the robo-signing controversy rocked the foreclosure industry back in late 2010 — indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both.”

Scheduled foreclosure auctions increased from a year ago in 24 states, including Colorado (up 160 percent), Oregon (up 117 percent), Connecticut (up 81 percent), New York (up 81 percent), Oklahoma (up 72 percent), New Jersey (up 71 percent), Illinois (up 25 percent), South Carolina (up 21 percent) and Maryland (up 17 percent).

Other high-level findings from the report:

  • More than 55,000 U.S. properties started the foreclosure process in August, up 12 percent from previous month and flat from year ago. It was the second consecutive month where U.S. foreclosure starts have increased on a month-over-month basis.
    • Foreclosure starts, which in some states are the scheduled foreclosure auctions, increased from a year ago in 19 states, including Oklahoma (up 147 percent), Indiana (up 136 percent), New Jersey (up 115 percent), Massachusetts (up 55 percent), Florida (up 24 percent) and Maryland (up 20 percent).

 

  • Lenders repossessed 26,343 U.S. properties via foreclosure (REO) in August, up 2 percent from the previous month but down 33 percent from a year ago. It was the 21st consecutive month where REO activity declined on a year-over-year basis nationally.

 

  • REOs increased from a year ago in seven states, included Georgia (up 146 percent), Hawaii (up 42 percent), Oregon (up 20 percent), Pennsylvania (up 12 percent) and Connecticut (up 10 percent).
  • Six of the nation’s 20 largest metro areas posted year-over-year increases in foreclosure activity: Washington, D.C. (up 18 percent); New York (up 18 percent); Baltimore (up 12 percent); Atlanta (up 11 percent); Philadelphia (up 11 percent); and San Francisco (up 2 percent).
  • Among the nation’s 20 largest metros those with the five highest foreclosure rates were Miami (one in every 359 housing units with a foreclosure filing); Tampa (one in every 407 housing units); Baltimore (one in every 17 housing units); Riverside-San Bernardino in Southern California (one in every 612 housing units); and Chicago (one in every 662 housing units).

Florida, Nevada, Maryland, New Jersey, Georgia post highest state foreclosure rates
A total of 6,468 Florida properties started the foreclosure process in August, a 74 percent jump from the previous month and up 24 percent from a year ago, the first year-over-year increase in foreclosure starts after 17 consecutive months of year-over-year decreases. The rise in foreclosure starts helped Florida post the nation’s highest state foreclosure rate for the 11th consecutive month. One in every 400 Florida housing units had a foreclosure filing in August, nearly three times the national average.

The Nevada foreclosure rate of one in every 524 housing units with a foreclosure filing ranked second highest among the states, up from a No. 3 ranking in the previous month thanks to a 36 percent month-over-month increase in foreclosure starts, bringing monthly foreclosure starts to the highest level since October 2013.

Maryland foreclosure starts in August increased 71 percent from the previous month and were up 20 percent from a year ago, helping that state’s foreclosure rate — one in every 532 housing units with a foreclosure filing — rank third highest in the nation.

New Jersey foreclosure starts in August increased 115 percent from a year ago to the highest level since January 2014, and scheduled foreclosure auctions increased 71 percent from a year ago to the highest level since July 2010, giving New Jersey the nation’s fourth highest state foreclosure rate: one in every 553 housing units with a foreclosure filing.

Georgia REO activity increased 196 percent from the previous month and was up 146 percent from a year ago to the highest level since August 2012, boosting the state’s foreclosure rate to fifth highest nationwide in August, up from 12th highest in July. One in every 582 Georgia housing units had a foreclosure filing during the month.

Other states with foreclosure rates among the nation’s 10 highest in August were Delaware at No. 6 (one in every 746 housing units with a foreclosure filing); Ohio at No. 7 (one in every 840 housing units); Illinois at No. 8 (one in every 842 housing units); Indiana at No. 9 (one in every 893 housing units); and South Carolina at No. 10 (one in every 949 housing units).

Macon, Atlantic City, Orlando post top metro foreclosure rates
With one in every 154 housing units with a foreclosure filing in August, Macon, Ga., posted the highest foreclosure rates among metropolitan statistical areas with a population of 200,000 or more. Macon foreclosure activity in August increased from a year ago following 18 consecutive months of year-over-year declines.

Foreclosure activity in Atlantic City, N.J., increased on a year-over-year basis in August for the 28th time in the last 30 months, helping the metro area’s foreclosure rate rank second highest nationwide. One in every 292 housing units in Atlantic City had a foreclosure filing in August, nearly four times the national average.

One in every 294 Orlando housing units had a foreclosure filing in August, the nation’s third highest metro foreclosure rate. Orlando foreclosure activity increased 33 percent from a year ago, and all three stages of foreclosure saw increases from a year ago: foreclosure starts increased 18 percent, scheduled auctions increased 63 percent, and REOs increased 15 percent to the highest level since January 2013.

The remaining seven metro areas with foreclosure rates in the top 10 highest were all in Florida: Jacksonville at No. 4 (one in every 300 housing units with a foreclosure filing); Miami at No. 5 (one in every 359 housing units); Palm Bay-Melbourne-Titusville at No. 6 (one in every 368 housing units); Tampa at No. 7 (one in every 407 housing units); Pensacola at No. 8 (one in every 426 housing units); Cape Coral-Fort Myers at No. 9 (one in every 430 housing units); and Lakeland at No. 10 (one in every 441 housing units).

Foreclosure activity increased from a year ago in eight of the markets with top 10 highest foreclosure rates. The only markets with decreases in foreclosure activity from a year ago were Miami (down 10 percent), and Tampa (down 14 percent).

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’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 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.

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About RealtyTrac
RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 125 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, Automated Valuation Models (AVMs) and 20 million active and historical default, foreclosure auction and bank-owned properties. RealtyTrac’s housing data and foreclosure reports are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

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Ginny Walker
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ginny.walker@realtytrac.com

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