Activity Inches Up After ThreeStraight Quarterly Decreases FollowingRobo-Signing
Foreclosure Processing and Sales Timelines Hit RecordHighs
IRVINE, Calif. – Oct. 13, 2011– RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today releasedits U.S. Foreclosure Market Report™ for the third quarter of 2011,which shows foreclosure filings — default notices, scheduled auctionsand bank repossessions — were reported on 610,337 properties in the thirdquarter, an increase of less than 1 percent from the previous quarterand a decrease of 34 percent from the third quarter of 2010. Thereport shows one in every 213 U.S. housing units with a foreclosurefiling during the quarter.
Foreclosure filings were reportedon 214,855 U.S. properties in September, a 6 percent decrease fromAugust and a 38 percent decrease from September 2010. September marked the 12th straight month where foreclosure activitydecreased on a year-over-year basis.
“U.S.foreclosure activity has been mired down since October of last year,when the robo-signing controversy sparked a flurry of investigationsinto lender foreclosure procedures and paperwork,” said James Saccacio, chief executive officer of RealtyTrac. “While foreclosure activityin September and the third quarter continued to register well belowlevels from a year ago, there is evidence that this temporarydownward trend is about to change direction, with foreclosureactivity slowly beginning to ramp back up.
“Third quarterforeclosure activity increased marginally from the previous quarter,breaking a trend of three consecutive quarterly decreases thatstarted in the fourth quarter of 2010,” Saccacio continued. “Thismarginal increase in overall foreclosure activity was fueled by a 14percent jump in new default notices, indicating that lenders are cautiously throwing more wood into the foreclosure fireplace after spendingmonths trying to clear the chimney of sloppily filedforeclosures.”
Foreclosure Processing and SalesTimelines Hit Record Highs
U.S. properties foreclosedin the third quarter took an average of 336 days to complete theforeclosure process, up from 318 days in the second quarter and thehighest number of days going back to the first quarter of2007.
New York properties foreclosed in the thirdquarter took an average of 986 days to complete the foreclosureprocess, the longest of any state and a record high for the state.The second longest average foreclosure process was in New Jersey, at974 days, and the third longest average foreclosure process was inFlorida, at 749 days.
Texas registered the shortest averageforeclosure process of any state, at 86 days, down from 92 days inthe second quarter but still up from 53 days in the third quarter of2007. Kentucky properties foreclosed in the third quarter took anaverage of 94 days to complete the foreclosure process, the secondshortest among the states, and Virginia properties foreclosed in thethird quarter took an average of 102 days to complete the foreclosureprocess, the third shortest among the states.
The averagetime to sell foreclosures also hit a record high in the third quarter.Properties in the foreclosure process that sold during the thirdquarter (usually short sales) took an average of 318 days to sellafter entering the foreclosure process, up from 245 days in the previous quarter. Bank-owned properties sold in the third quarter tookan average of 193 days to sell after being repossessed by the bank,up from 178 days in the secondquarter.
Foreclosure Activity byType
Default notices (NOD, LIS) were filed on 195,878 U.S. properties in the thirdquarter, up 14 percent from the previous quarter but down 27 percentfrom the third quarter of 2010. In September, default notices werefiled on 70,710 U.S. properties, down 10 percent from a nine-monthhigh in August and down 31 percent from September2010.
Some of the states with the biggest quarterly increases in default notices included Massachusetts, with a 65percent quarter-over-quarter increase; New Jersey, with a 29 percentincrease; Florida, with a 24 percent increase; Ohio, with a 21percent increase; and California, also with a 21 percentincrease.
Foreclosure auctions (NTS, NFS) were scheduled for the first time for 217,929U.S. properties in the third quarter, down 6 percent from theprevious quarter and down 41 percent from the third quarter of 2010.In September, foreclosure auctions were scheduled for the first timefor 79,098 U.S. properties, down 6 percent from August and down 45percent from September 2010.
Lenders foreclosed on 196,530U.S. properties during the third quarter, a 4 percent decrease fromthe previous quarter and a 32 percent decrease from the third quarterof 2010. In September, lenders foreclosed on 65,047 U.S. properties,an increase of less than 1 percent from August but down 36 percentfrom September 2010, when REO activity hit a monthly peak of 102,134bank repossessions.
A handful of states posted significantquarterly increases in REO activity in the third quarter, bucking thenational trend. Those states included Massachusetts, with a 62percent quarter-over-quarter increase; Oregon, with a 47 percentincrease; Georgia, with a 42 percent increase; and Illinois, with a27 percent increase.
Nevada, California,Arizona post top state foreclosurerates
Nevadaposted the nation’s highest state foreclosure rate — one in every 44housing units with a foreclosure filing in the third quarter. OverallNevada foreclosure activity decreased from the previous quarterthanks to decreases in scheduled auctions and REOs, but defaultnotices in Nevada increased 15 percent from the second quarter to thethird quarter — boosted in part by a 16 percent month-over-monthincrease in defaults in September.
Californiadefault activity also increased on a quarterly basis, and the statedocumented the nation’s second highest foreclosure rate — one inevery 88 housing units with a foreclosure filing during thequarter.
One in every 93 Arizona housing units hada foreclosure filing in the third quarter, the nation’s third higheststate foreclosure rate. Arizonaforeclosure activity dropped 25 percent from the previousquarter and was down nearly 40 percent from the third quarter of2010.
Other states with foreclosure rates rankingamong the top 10 in the third quarter were Georgia, Florida, Utah,Michigan, Idaho, Illinois and Colorado.
TopForeclosure Activity Totals
California’s153,051 properties with foreclosure filings in the third quarter wasthe highest total of any state and accounted for one in every fourproperties with foreclosure filings nationwide during the quarter.
Floridaaccounted for one in every 9 properties with foreclosure filingsnationwide during the third quarter, with a total of 67,886 — thesecond highest of any state and an increase of 15 percent from theprevious quarter. The quarterly increase was driven by a 24 percentincrease in new default notices and a 14 percent increase in bank repossessions. Despite the quarterly increase, Floridaforeclosure activity in the third quarter was still down 57percent from the third quarter of 2010.
A 21percent quarterly increase in overall foreclosure activity — caused largelyby a 42 percent increase in REOs — helped Georgia secure the nation’sthird highest overall foreclosure activity total during the thirdquarter. There were a total of 33,637 Georgia properties withforeclosure filings during the quarter, still down 18 percent fromthe third quarter of 2010.
Other states with foreclosure activity totals among the nation’s 10 highest wereIllinois (32,297), Michigan (31,179), Arizona (29,701), Texas (27,860),Nevada (25,900), Ohio (24,166) and Colorado(12,918).
Foreclosure Starts Up in 21 of 25Metros with Highest ForeclosureRates
Foreclosure filings initiating theforeclosure process (either defaults or scheduled auctions, dependingon the state foreclosure process) increased on a quarterly basis inthe third quarter in 21 of the 25 metro areas with the highestforeclosure rates among metropolitan areas with a population of200,000 or more.
The only top 20 metro areas whereforeclosure starts decreased from the previous quarter were the Arizona cities of Phoenix and Prescott, along with Greeley, Colo., andBoise, Idaho.
California cities accountedfor 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 Stocktonat No. 3 (one in 52 housing units), Modesto at No. 4 (one in 53housing units), and Riverside-San Bernardino at No. 5 (one in 56housing units).
Nevada cities accounted for two ofthe top 25 metro foreclosure rates, led by Las Vegas at No. 1, with one in every 39 housing units with a foreclosure filing during thethird quarter. Reno-Sparks, Nev., ranked No. 9, with one in every 67housing units with a foreclosure filing.
TwoFlorida cities also posted foreclosure rates in the top 25: CapeCoral-Fort Myers at No. 15, with one in every 92 housing units with aforeclosure filing in the third quarter; and Miami at No. 23, withone in every 108 housing units with a foreclosure filing.
The two remaining cities in the top 25 wereAtlanta 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 MarketReport provides a count of the total number of properties with atleast one foreclosure filing entered into the RealtyTrac databaseduring the month and quarter — broken out by type of filing. Someforeclosure filings entered into the database during a month orquarter may have been recorded in previous months or quarters. Datais collected from more than 2,200 counties nationwide, and thosecounties account for more than 90 percent of the U.S. population.RealtyTrac’s report incorporates documents filed in all three phasesof foreclosure: Default — Noticeof Default (NOD) and LisPendens (LIS); Auction — Notice of Trustee Saleand Notice of Foreclosure Sale (NTS and NFS); and RealEstate Owned, or REOproperties (that have been foreclosed on and repurchased bya bank). For the quarterly report, if more than one foreclosuredocument is received for a property during the quarter, only the mostrecent filing is counted in the report. Both the quarterly andmonthly reports check if the same type of document was filed againsta property previously. If so, and if that previous filing occurredwithin the estimated foreclosure timeframe for the state where theproperty is located, the report does not count the property in thecurrent month or quarter.
The RealtyTrac U.S.Foreclosure Market Report is the result of a proprietary evaluationof information compiled by RealtyTrac; the report and any of theinformation 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 sourcefor said report and/or any of the information set forth within thereport.
RealtyTrac (www.realtytrac.com) is theleading online marketplace of foreclosure properties, with more than2 million default, auction and bank-owned listings from over 2,200U.S. counties, along with detailed property, loan and home salesdata. Hosting more than 3 million unique monthly visitors, RealtyTracprovides innovative technology solutions and practical education resourcesto 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 bankingdepartments to help evaluate foreclosure trends and address policyissues related to foreclosures.For current news and information regarding foreclosure-related issues andtrends, visit our blog at www.ForeclosurePulse.com.
Detailed and historical foreclosure data used to create the above report may bepurchased through the RealtyTrac Data Licensing Department at 949.502.8300 Ext.158. Aggregate data is available at the state, metro, county and zip codelevels dating back to 2005, and address-level foreclosure records are also available historically. MediaContacts:
949.502.8300, ext. 139