U.S. FORECLOSURE DECREASES 2 PERCENT IN JUNE TO LOWEST LEVEL SINCE JULY 2006, BEFORE HOUSING BUBBLE BURST

10 States in
June Hit Lowest Level Since Housing Price Bubble Burst in August
2006;

  613,874 U.S. Properties with
Foreclosure Filings in First Half of 2014;

 
NJ, MD, IA, MA, CT Buck National Trend With Increasing Foreclosure
Activity;

  Foreclosure Starts on Pace
to Reach 630,000 for Year, REOS Nearly 350,000 for
Year

IRVINE, Calif. – July 17, 2014
RealtyTrac® (www.realtytrac.com), the
leading online marketplace for real estate data, today released its Midyear
2014 U.S. Foreclosure Market Report™, which shows a total of 613,874 U.S.
properties with foreclosure filings — default notices, scheduled auctions and
bank
repossessions
— in the first half of 2014, a 19 percent decrease from
the previous six months and down 23 percent from the first half of 2013. The
report also shows that 0.47 percent of all U.S. housing units (one in 214) had
at least one foreclosure filing in the first six months of the
year.

The report also includes new foreclosure activity data
from June, when a total of 107,194 U.S. properties had a foreclosure filing,
down 2 percent from the previous month and down 16 percent from a year ago to
lowest level since July 2006, before the housing price bubble
burst.

Total foreclosure activity in June was the lowest
since the housing bubble burst in August 2006 in 10 states, including Texas,
Georgia, Colorado, Tennessee, Arizona and Nevada.

“Nationwide foreclosure activity in June reached an important
milestone, dropping to levels not seen since before the housing price bubble
burst in August 2006,” said Daren Blomquist, vice president at RealtyTrac.
“Over the next six to nine months nationwide foreclosure numbers should start
to flat line at consistent historically normal levels.

“There
continue to be concerning trends in some states and local markets that clearly
indicate those markets are not completely out of the woods when it comes to the
lingering foreclosure problem left over from the housing bust,” Blomquist
continued. “While it’s important that any remaining foreclosure infection is
addressed promptly to keep it from festering, foreclosures are no longer a widespread
contagion threatening to derail the housing market’s return to full
health.”

Other
high-level findings from the
report:

  • Only nine states saw overall
    foreclosure activity increase in the first half of 2014 compared to a year ago,
    including New Jersey (up 54 percent), Maryland (up 18 percent), Iowa (up 10
    percent), Massachusetts (up 4 percent), and Connecticut (up 4 percent).

  • States with the highest
    foreclosure rates in the first half of 2014 were Florida (one in 74 housing
    units with a foreclosure filing), Maryland (one in 107), Illinois (one in 123),
    New Jersey (one in 134), and Nevada (one in
    138).
  • A total of 47,243 U.S.
    properties started the foreclosure process for the first time (not including
    re-filings) in June, down 4 percent from the previous month and down 18 percent
    from a year ago to the lowest level since November 2005 — a more than 8 and a
    half year low.
  • Foreclosure
    starts in June increased from the previous month in 15 states and were up from
    a year ago in 20 states, including Massachusetts (105 percent increase), New
    Jersey (70 percent increase), Nevada (66 percent increase), Indiana (65 percent
    increase), Oregon (50 percent increase), and Ohio (17 percent
    increase).
  • Halfway through 2014, a
    total of 315,895 U.S. properties have started the foreclosure process, on pace
    to reach more than 630,000 for the year, which would be down from the 747,728
    in 2013.
  • A total of 26,889
    U.S. properties were repossessed by lenders via foreclosure in June, down 5
    percent from the previous month and down 24 percent from a year ago to the
    lowest level since June 2007 — an 84-month (7-year)
    low.

  • Lender repossessions in June
    increased from the previous month in 16 states and were up from a year ago in
    12 states, including Iowa (up 86 percent), Maryland (up 86 percent), New York
    (up 49 percent), Oregon (up 22 percent), California (up 18 percent), Illinois
    (up 8 percent), and New Jersey (up 5 percent).
  • Halfway through the year a
    total of 174,691 U.S. properties have been repossessed by lenders via
    foreclosure, on pace to reach nearly 350,000 for the year, which would be down
    from the 462,970 lender repossessions in all of
    2013.
  • A total of 46,743 U.S.
    properties were scheduled for foreclosure auction (in some states these are
    foreclosure starts) in June, down 1 percent from the previous month and down 13
    percent from a year ago to the lowest level since July 2006 — a 95-month low.
  • Scheduled foreclosure
    auctions increased from the previous month in 12 states and were up from a year
    ago in 17 states, including Connecticut (up 68 percent), Pennsylvania (up 62
    percent),New Jersey (up 25 percent), North Carolina (up 15 percent), Florida
    (up 15 percent), and New York (up 10
    percent).
  • For properties foreclosed
    in the second quarter of 2014, the average time to complete a foreclosure was
    577 days, up from 572 days in the previous quarter and up from 526 days in the
    second quarter of 2013.
  • States with the longest time to foreclose were New Jersey (1,098 days), New
    York (930 days), Florida (925 days), Hawaii (915 days), Illinois (850 days),
    and Massachusetts (784 days).

Local
broker quotes from the RealtyTrac
Network

  • “Distressed properties
    continue to wane as more traditional sellers find their way into the housing
    market and home prices continue to rise,” said Chris Pollinger, senior vice
    president of sales at First
    Team Real Estate
    , covering the Southern California market.
  • “Most indicators show the
    immediate future will stay the same for the Front Range housing market,” said
    Greg Smith, broker/owner of RE/MAX
    Alliance
    , covering the Denver, Colo. market.  “The
    absorption rate is beginning to show movement towards a balanced market, but
    buyers and sellers emotionally tend to lag the market as a whole, so even
    though the overall indicators are showing a balanced market many sellers and
    buyers are still behaving as if it is a seller’s market.”
  • “Lenders are acting quickly regarding delinquent homeowners to determine if the
    property can be placed on the market for quick sale versus moving the home
    immediately into the foreclosure process,” said Michael Mahon, executive vice
    president/broker at HER
    Realtors
    , covering the Cincinnati, Columbus and Dayton, Ohio
    markets.  “Low inventory levels and predicted increasing interest
    rates towards year end will create changes in housing affordability as we
    proceed into the second half of 2014, limiting options for some consumers.”

Florida, Maryland,
Illinois post top state foreclosure rates in first half of
2014

The Florida
foreclosure rate
was the nation’s highest in the first half of 2014:
1.35 percent of housing units with a foreclosure filing (one in 74) during the
six-month period — nearly three times the national average. A total of 121,412
Florida properties had a foreclosure filing in the first six months of the
year, the most of any state but down 16 percent from the previous six months
and down 22 percent from a year ago. In June, Florida foreclosure starts (LIS)
and foreclosure completions (REO) were down from a year ago, but scheduled
foreclosure auctions increased 15 percent from a year ago. Florida scheduled
foreclosure auctions have increased annually in 16 of the last 18
months.

Maryland
foreclosure activity
in the first half of 2014 decreased 12 percent
from the previous six months but was still up 18 percent from a year ago,
helping boost the state’s foreclosure rate to second highest in the nation:
0.93 percent of housing units with a foreclosure filing (one in 107) during the
six-month period. In June, Maryland foreclosure activity increased 7 percent
from the previous month and was up 12 percent from a year ago, boosted by an 86
percent year-over-year increase in bank repossessions.

A
total of 42,866 Illinois properties had a foreclosure filing in the first half
of 2014, 0.81 percent of all housing units (one in every 123) — the nation’s
third highest state foreclosure rate. The Illinois
foreclosure rate
ranked No. 3 in the first half of 2014 despite a 16
percent decrease in foreclosure activity from the previous six months and a 32
percent decrease in foreclosure activity from a year ago. Overall foreclosure
activity in Illinois jumped 23 percent between May and June, but was still down
19 percent from a year ago driven by decreases in foreclosure starts and
scheduled foreclosure auctions. Bank repossessions in Illinois in June increased
8 percent from a year ago, the third consecutive month with an annual
increase.

A total of 26,467 New Jersey properties had a
foreclosure filing in the first half of 2014, a 54 percent increase from
a  year ago and 0.74 percent of all housing units (one in every 134) —
the nation’s fourth highest state foreclosure rate.

A total
of 8,504 Nevada properties had a foreclosure filing in the first half of 2014,
a 48 percent decrease from a year ago and 0.73 percent of all housing units (one
in every 138) — the nation’s fifth highest state foreclosure
rate.

Other states with foreclosure rates ranking among the
nation’s 10 highest in the first six months of 2014 were Ohio (0.69 percent of
all housing units with a foreclosure filing), Delaware (0.68 percent),
Connecticut (0.66 percent), Indiana (0.63 percent), and South Carolina (0.62
percent).

79 percent of metros post decreasing
foreclosure activity in first half of 2014

Of the 212
metropolitan statistical areas tracked in the report, 168 (79 percent) posted
decreasing foreclosure activity compared to a year ago, with an average
decrease of 32 percent.

Major metros with decreasing
foreclosure activity in the first half of 2014 compared to a year ago included
Los Angeles (down 20 percent), Chicago (down 30 percent), Dallas (down 28
percent), Houston (down 29 percent), and Miami (down 30
percent).

Meanwhile 44 metro areas bucked the national trend
with increasing foreclosure activity from a year ago in the first half of 2014.
Major metros with increasing foreclosure activity included New York (up 20
percent), Philadelphia (up 6 percent), Washington, D.C. (up 12 percent), and
Baltimore (up 3 percent).

Despite the annual decrease, Miami
posted the nation’s highest metro foreclosure rate: 1.65 percent of all housing
units (one in 61) with a foreclosure filing during the first half of the year.
Eight other Florida metro areas joined Miami among the top 10 metro foreclosure
rates nationwide: Orlando at No. 2 (1.57 percent of all housing units with a
foreclosure filing); Port St. Lucie at No. 3 (1.49 percent); Palm
Bay-Melbourne-Titusville at No. 4 (1.49 percent); Tampa-St. Petersburg at No. 5
(1.41 percent); Lakeland at No. 6 (1.35 percent); Deltona-Daytona Beach-Ormond
Beach at No. 7 (1.29 percent); Ocala at No. 8 (1.26 percent); and Jacksonville
at No. 9 (1.24 percent).

Of the Florida markets with top 10
foreclosure rates, all posted annual decreases in foreclosure activity except for
Port St. Lucie (up 19 percent from a year ago), Lakeland (up 2 percent), and
Deltona-Daytona Beach-Ormond Beach (up 21 percent).

The only
metro area outside of Florida with a top 10 foreclosure rate in the first half
of 2014 was Rockford, Il., where 1.24 percent of housing units (one in 81) had
a foreclosure filing during the six-month
period.

Foreclosure process lengthens
nationwide, down from a year ago in 17 states

U.S.
properties foreclosed in the second quarter of 2014 were in the foreclosure
process an average of 577 days from the initial public foreclosure notice to
the completed foreclosure, up 10 percent from 526 days in the second quarter of
2013.

The average time to foreclose decreased from a year ago
in 17 states, including Minnesota (down 20 percent), Texas (down 17 percent),
Maryland (down 17 percent), Georgia (down 11 percent), New York (down 10
percent), and California (down 7 percent).

The average time
to foreclose was 1,098 days in New Jersey, the longest of any state, followed
by New York at 930 days, Florida at 925 days, Hawaii at 915 days, Illinois at
850 days, and Massachusetts at 784 days.

The average time to
foreclose was 169 days in Delaware, the shortest of any state, followed by Texas
at 173 days, Alaska at 185 days, Minnesota at 192 days, and Alabama at 207
days.

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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Licensing and Custom Report Order

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