U.S. Foreclosure Activity Hits 7-Month High in October

Defaults inCalifornia, Florida and Michigan Hit Highs of 12 Months orMore
 New State Law Pushes NevadaDefaults to 64-Month Low, Las Vegas No Longer No. 1

IRVINE,Calif. – Nov. 10, 2011 — RealtyTrac® (www.realtytrac.com), theleading online marketplace for foreclosure properties, today released its U.S.Foreclosure Market Report™ for October 2011, which shows foreclosure filings –default notices, scheduled auctions and bankrepossessions — were reported on 230,678 U.S. properties in October,a 7 percent increase from the previous month, but still down nearly 31 percentfrom October 2010. The report also shows one in every 563 U.S. housing unitswith a foreclosure filing during the month.

“The Octoberforeclosure numbers continue to show strong signs that foreclosure activity iscoming out of the rain delay we’ve been in for the past year as lenderscorrected foreclosure paperwork and processing problems,” said James Saccacio,chief executive officer of RealtyTrac. “However, recent state court rulings andnew state laws keep changing the rules of the foreclosure game on the fly,creating more uncertainty in the housing market and threatening to prolong theroad to a robust real estaterecovery.”

Foreclosure Activity byType
Defaultnotices (NOD, LIS) were filed for the first time on a total of 77,733U.S. properties in October, a 10 percent increase from September, but stilldown 23 percent from October 2010. Default notices in states using the judicialprocess (LIS) reached an 11-month high of 39,282 in October, a 16 percentincrease from the previous month, but still down 31 percent from October2010.

Default notices increased more than 25 percent on amonth-over-month basis in several states, including Florida (28 percent),Pennsylvania (50 percent) and Indiana (61 percent). Despite the sizable monthlyincreases, default notices were down on a year-over-year basis in all three ofthese states.

Foreclosureauctions (NTS, NFS) were scheduled on 85,321 U.S. properties inOctober, up 8 percent from the previous month, but still down 38 percent fromOctober 2010. Scheduled auctions in states using the judicial foreclosureprocess (NFS) reached an 11-month high of 25,941 in October, a 22 percentincrease from the previous month, but still down 43 percent from October2010.

Scheduled auctions increased more than 35 percent on amonth-over-month basis in several states, including Florida (57 percent),Minnesota (43 percent) and Illinois (38 percent), although scheduled auctionsin all three of those states were still down from October 2010.

Lendersrepossessed a total of 67,624 U.S. properties (REO) in October, a 4 percentincrease from the previous month, but still a 27 percent decrease from October2010. REO activity increased 40 percent or more on a month-over-month basis inseveral states, including Michigan (40 percent), Oregon (45 percent), NewJersey (48 percent), and Indiana (73 percent).

Nevada, California, Arizona post top stateforeclosure rates
Despite a 34 percent month-over-monthdrop in foreclosure activity, Nevadaposted the nation’s highest state foreclosure rate for the 58th straight monthin October. One in every 180 Nevada housing units had a foreclosure filingduring the month, still more than three times the national average despite thedrop-off in activity. The month-over-month decrease in Nevada was driven by a75 percent monthly decrease in new default notices, likely the result of a newlaw that as of October requires foreclosing lenders to sign and record inpublic records an affidavit with key information about any foreclosure. The1,201 new defaults in Nevada in October was the lowest since June 2006, a64-month low.

Californiadefault notices increased 17 percent from the previous month to a13-month high, helping the state post the nation’s second highest foreclosurerate: one in every 243 housing units with a foreclosure filing in October. A totalof 29,240 default notices were reported in California in October, a 1 percentincrease from October 2010 — the first year-over-year increase in defaults inCalifornia since November 2009.

Arizonaposted the nation’s third highest state foreclosure rate in October: one inevery 259 housing units with a foreclosure filing during the month. Totalforeclosure activity in Arizona increased nearly 18 percent from the previousmonth, but was still down 36 percent from October 2010.

Asharp monthly increase in new default notices and scheduled auctions boostedthe foreclosurerate in Florida to fourth highest among the states, up from sixthhighest in September. A total of 15,234 new default notices were reported inFlorida in October, up 28 percent from the previous month and a 12-month high.Scheduled auctions in Florida hit an 11-month high in October, with 10,655 reportedduring the month — up 57 percent from September.

New defaultnotices in Michigan also reached a 12-month high in October, increasing 13percent from the previous month, and the state posted the nation’s fifthhighest foreclosure rate for the month: one in every 282 housing units with aforeclosure filing.

The top five states in terms offoreclosure rate in October — Nevada, California, Arizona, Florida and Michigan– accounted for 53 percent of the national total for the month.

Otherstates with foreclosure rates ranking among the top 10 were Georgia, Illinois,Idaho, Oregon and Colorado.

LasVegas knocked out of No. 1 spot for foreclosurerates among metro areas
After 22 consecutive months withthe highest foreclosure rate among metropolitan areas with a population of200,000 or more, Las Vegas dropped to No. 5 on the list in October thanks to a36 percent decrease in foreclosure activity from the previous month. Theoverall decrease in Las Vegas was caused primarily by an 80 percent drop in newdefault notices from September to October. One in every 162 Las Vegas housingunits had a foreclosure filing in October, still more than three times thenational average.

With one in every 143 housing units with aforeclosure filing in October, Stockton, Calif., took the top metro foreclosurerate away from Las Vegas. Foreclosure activity in Stockton increased 10 percentfrom the previous month, but was still down nearly 18 percent from October 2010.New defaults in Stockton were up 20 percent from the previous month and up 9percent from October 2010.

Five other California metro areashad foreclosure rates that ranked among the top 10 in October. Modesto wasclose behind Stockton at No. 2 (one in every 148 housing units with aforeclosure filing), followed by Vallejo-Fairfield at No. 3 (one in every 150housing units), Riverside-San Bernardino at No. 4 (one in every 155 housingunits), Sacramento at No. 7 (one in every 176 housing units), and Merced at No.9 (one in every 200 housing units).

Other metro areas withforeclosure rates in the top 10 were Saginaw, Mich., at No. 6 (one in every 174housing units), Cape Coral-Fort Myers, Fla., at No. 8 (one in every 190 housingunits), and Orlando, Fla., at No. 10 (one in every 208 housingunits).

Reportmethodology
The RealtyTrac U.S. Foreclosure MarketReport provides a count of the total number of properties with at least oneforeclosure filing entered into the RealtyTrac database during the month –broken out by type of filing. Some foreclosure filings entered into thedatabase during the month may have been recorded in previous months. Data iscollected from more than 2,200 counties nationwide, and those counties accountfor more than 90 percent of the U.S. population. RealtyTrac’s reportincorporates documents filed in all three phases of foreclosure:DefaultNoticeof 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 by a bank).The report does not count a property again if it receives the same type offoreclosure filing multiple times within the estimated foreclosure timeframefor the state where the property islocated.

ReportLicense                                                                              
The RealtyTrac U.S.Foreclosure Market Report is the result of a proprietary evaluation ofinformation compiled by RealtyTrac; the report and any of the information inwhole or in part can only be quoted, copied, published, re-published,distributed and/or re-distributed or used in any manner if the userspecifically references RealtyTrac as the source for said report and/or any ofthe information set forth within thereport.

AboutRealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is theleading online marketplace of foreclosure properties, with more than 2 milliondefault, auction and bank-owned listings from over 2,200 U.S. counties, alongwith detailed property, loan and home sales data. Hosting more than 3 millionunique monthly visitors, RealtyTrac provides innovative technology solutionsand practical education resources to facilitate buying, selling and investingin real estate. RealtyTrac’s foreclosure data has also been used by the FederalReserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S.Treasury Department, and numerous state housing and banking departments to helpevaluate foreclosure trends and address policy issues related toforeclosures.

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