U.S. Foreclosure Activity Increases 2 Percent in July Boosted by 6 Percent Increase in Foreclosure Starts

BankRepossessions Up 4 Percent From Previous Month, 29 States PostIncreases;
  Total U.S. ForeclosureActivity Still Down Annually for 34th ConsecutiveMonth

IRVINE, Calif. – Aug. 15, 2013– RealtyTrac® (www.realtytrac.com), thenation’s leading source for comprehensive housing data, today released its U.S.Foreclosure Market Report™ for July 2013, which shows foreclosure filings –default notices, scheduled auctions and bankrepossessions — were reported on 130,888 U.S. properties in July, anincrease of 2 percent from the 78-month low in June but still down 32 percentfrom July 2012. The report also shows one in every 1,001 U.S. housing unitswith a foreclosure filing during themonth.

High-level findings from thereport:

  • The monthly increasein U.S. foreclosure activity was driven by a 6 percent monthly increase inforeclosure starts and a 4 percent monthly increase in bank repossessions(REO), although both metrics decreased from a yearago.
  • Foreclosure starts increasedfrom the previous month in 26 states and were up from a year ago in 15 states,including Maryland (up 275 percent), Oregon (up 137 percent), New Jersey (up 89percent), Connecticut (up 37 percent), and New York (up 27percent).
  • Bank repossessionsincreased from the previous month in 29 states and were up from a year ago in18 states, including Arkansas (up 266 percent), Oklahoma (up 126 percent),Maryland (up 101 percent), New York (up 100 percent), Connecticut (up 67percent), New Jersey (up 40 percent), and Ohio (up 20percent).

  • The top six stateforeclosure rates in July were in states with a judicial foreclosure process,although two of those top six states posted decreasing foreclosure activityfrom a year ago: Ohio (down 18 percent) and Illinois (down 44 percent).
  • Arizona’sforeclosure rate dropped out of the top 10 highest for the first timesince February 2007, joining California’s foreclosure rate, which was out ofthe top 10 for the sixth consecutive month in July, and Michigan’s foreclosurerate, which was out of the top 10 for the fifth consecutive month inJuly.
  • Nine of the nation’s 10 highestmetro foreclosure rates in July were in Florida cities, and five of those nineFlorida cities posted increasing foreclosure activity from a yearago.
  • Among the nation’s 20 largestmetropolitan statistical areas, 10 posted increasing foreclosure activity fromthe previous month and five posted increasing foreclosure activity from a yearago: Baltimore (up 182 percent), Miami (up 58 percent), New York (up 42percent), Philadelphia (up 11 percent), and Washington, D.C. (up 5percent).

“While foreclosures are continuing to boilover in a select group of markets where state legislation and court rulingskept a lid on foreclosure activity during the worst of the housing crisis, theforeclosure boil-over markets are becoming fewer and farther between as lendershave caught up with the backlog of delayed foreclosures in some of the stateswith the more lengthy judicial foreclosure process,” said Daren Blomquist, vicepresident of RealtyTrac. “For example, Illinois foreclosure activity has nowdecreased on a year-over-year basis for eight consecutive months following 11straight months of annual increases, and Ohio has seen three consecutive monthswith annual decreases following eight straight months with annualincreases.

“U.S. foreclosure activity in July is 64 percentbelow the peak of more than 367,000 properties with foreclosure filings inMarch 2010, but is still 54 percent above the historical average of 85,000properties with foreclosure filings per month before the housing bubble burstin late 2006,” Blomquist continued. “There are a dozen states, however, whereforeclosure activity levels in July were at or below average monthly levelsprior to the bubble bursting. Those states include Texas, Colorado, Oklahoma,Indiana and Michigan, and we expect the number of states in this category toincrease in the coming months.”


Localbroker quotes from the RealtyTracNetwork

  • “We continue to seepositive signs of growth in the Oklahoma housing market. There are moreinvestors looking to buy REOs in the Oklahoma City and Tulsa markets than we’veever seen,” said Sheldon Detrick, CEO of PrudentialDetrick Realty/PrudentialAlliance Realty in Tulsa and Oklahoma City, Okla.  “Thesupply of available REO properties is nowhere near the level of demand, so it’sbecoming common place to receive multiple offers and to sell REOs over the listingprice.”
  • “More and more homes are nowcoming on the market from non-distressed homeowners thanks to the snap back inpricing that homeowners have experienced over the past 12 months or so,” saidRich Cosner, CEO of PrudentialCalifornia Realty, covering Orange, Riverside and San Bernardinocounties in Southern California. “Because these prices moved up in favor of thehomeowners, more and more people are now putting their home on the market andover time this will relieve the dire inventoryshortage.”

Florida, Maryland, Ohiopost top state foreclosure rates
Florida posted thenation’s highest state foreclosure rate for the third consecutive month inJuly: one in every 328 housing units with a foreclosure filing during the month– more than three times the national average. Floridaforeclosure activity increased 8 percent from the previous month andwas up 7 percent from a year ago. Florida foreclosure activity has increased onan annual basis in 16 of the last 19 months. Florida foreclosure startsdecreased 28 percent from a year ago — the fifth consecutive month with anannual decrease in foreclosure starts — but scheduled foreclosure auctionsincreased 74 percent from a year ago and bank repossessions increased 13percent from a year ago.

Maryland documented the nation’ssecond highest state foreclosure rate in July — the highest foreclosure rateranking for the state since RealtyTrac began issuing its report in January2005. A total of 3,962 Maryland properties had foreclosure filings during themonth, an increase of 148 percent from a year ago and one in every 598 housingunits. Marylandforeclosure starts increased 275 percent annually while scheduledauctions were up 96 percent and bank repossessions were up 101 percent duringthe same time period. Including July, overall foreclosure activity in Marylandhas increased annually for 13 consecutive months.

Despite an18 percent year-over-year decrease in foreclosure activity in July, Ohio postedthe nation’s third highest state foreclosure rate for the month: one in every639 housing units with a foreclosure filing. Including July, Ohioforeclosure activity has decreased annually for three consecutivemonths after hitting a 33-month high in April.

A 33 percentmonthly increase in foreclosure activity in July helped boost Connecticut’sforeclosure rate to fourth highest nationwide — the highest ranking for the statesince it was at No. 2 in April 2007. A total of 2,247 Connecticut propertieshad a foreclosure filing during the month, one in every 660 housing units and a46 percent increase from July 2012 — the sixth consecutive month with an annualincrease in foreclosure activity.

Other states withforeclosure rates ranking among the 10 highest nationwide were New Mexico (onein every 678 housing units with a foreclosure filing), Illinois (one in every682 housing units), Nevada (one in every 731 housing units), Georgia (one inevery 742 housing units), South Carolina (one in every 785 housing units), andUtah (one in every 824 housing units).

Topmetro foreclosure rates dominated by Floridacities
With one in every 230 housing units with aforeclosure filing in July, Jacksonville, Fla., posted the nation’s highestforeclosure rate among metropolitan statistical areas with a population of200,000 or more. Foreclosure activity in the Jacksonville metro area increased19 percent from the previous month and was up 24 percent from a year ago — theninth consecutive month where the metro has reported an annual increase inforeclosure activity.

Eight other Florida cities postedforeclosure rates among the top 10 highest nationwide: Miami-Fort Lauderdale-PompanoBeach at No. 2 (one in every 250 housing units with a foreclosure filing); PortSt. Lucie at No. 3 (one in 256 housing units); Ocala at No. 4 (one in every 294housing units); Palm Bay-Melbourne-Titusville at No. 5 (one in every 296housing units); Tampa-St. Petersburg-Clearwater at No. 7 (one in 334 housingunits); Orlando-Kissimmee at No. 8 (one in 344 housing units); Pensacola-FerryPass-Brent at No. 9 (one in every 345 housing units); andSarasota-Bradenton-Venice at No. 10 (one in 394 housingunits).

The only metro outside of Florida with a top 10foreclosure rate was Albuquerque, N.M., at No. 6 with one in every 331 housingunits with a foreclosure filing in July.

20major metro foreclosure trends
With one in every 250housing units with a foreclosure filing, Miami posted the highest foreclosurerate among the nation’s 20 largest metropolitan statistical areas bypopulation. Miami was one of 10 markets among the 20 largest to post amonth-over-month increase in foreclosure activity and one of five to post ayear-over-year increase in foreclosure activity.

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’s 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.

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.

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AboutRealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is theleading source of comprehensive housing data, with more than 1.5 million activedefault, foreclosureauction and bank-ownedproperties, and more than 1 million active for-sale listings on its website,which also provides essential housing information for more than 100 millionhomes nationwide. This information includes property characteristics, taxassessor records, bankruptcy status and sales history, along with 20 categoriesof key housing-related facts provided by RealtyTrac’s wholly-owned subsidiary,Homefacts®.RealtyTrac’s foreclosurereports and other housing data 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 andconsumers, to help evaluate housing trends and make informed decisions aboutreal estate.

Jennifer von Pohlmann
949.502.8300,ext. 139

949.502.8300, ext. 268

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