First QuarterForeclosure Activity At Lowest Level Since Q22007
Average Time to Foreclose Up toRecord 477 Days Nationwide
IRVINE,Calif. – April 11, 2013 — RealtyTrac® (www.realtytrac.com), theleading online marketplace for foreclosure properties and real estate data,today released its U.S. Foreclosure Market Report™ for March and the firstquarter of 2013, which shows foreclosure filings — default notices, scheduledauctions and bankrepossessions — were reported on 152,500 U.S. properties in March, adecrease of 1 percent from the previous month and down 23 percent from March2012.
The decrease in March helped drop first quarterforeclosure numbers to the lowest level since the second quarter of 2007.Foreclosure filings were reported on 442,117 U.S. properties in the firstquarter, down 12 percent from the previous quarter and down 23 percent from thefirst quarter of 2012.
“Although the overall nationalforeclosure trend continues to head lower, late-blooming foreclosures arebolting higher in some local markets where aggressive foreclosure preventionefforts in previous years are wearing off,” said Daren Blomquist, vicepresident at RealtyTrac. “Meanwhile, more recent foreclosure prevention effortsin other states have drastically increased the average time to foreclose, whichcould result in a similar outbreak of delayed foreclosures down the road inthose states.”
High-level findings from thereport
- U.S. foreclosure startsincreased 2 percent from February to March, the second straight monthlyincrease following three consecutive monthly decreases. There were a total of73,113 foreclosure starts nationwide in March, still down 28 percent from ayear ago.
- Foreclosure starts in March increased from the previousmonth in 23 states and were up annually in 12 states, led by New York (200percent increase), Maryland (193 percent increase), Washington (154 percentincrease), Arkansas (101 percent increase), and Nevada (88 percentincrease).
- Lenders repossessed 43,597properties nationwide in March, the lowest since September 2007. U.S. bankrepossessions (REOs) in March decreased 3 percent from February and were down21 percent from a year ago.
- A totalof 34 states reported annual decreases in REO activity in March, includingOregon (down 72 percent), Utah (down 71 percent), Massachusetts (down 61percent), Michigan (down 56 percent), and Nevada (down 55 percent).
- States bucking thenational downward trend in REOs included Arkansas (up 121 percent annually inMarch), Maryland (up 114 percent), Washington (up 88 percent), Pennsylvania (up41 percent), and Ohio (up 39percent).
- Properties repossessed bylenders in the first quarter took an average of 477 days to complete theforeclosure process, up from 414 days in the previous quarter and a record highsince RealtyTrac began tracking this metric in the first quarter of2007.
- The average time to foreclosein the first quarter increased from the previous quarter in 39 states, led byOregon (up 61 percent), Arkansas (up 42 percent), Texas (up 40 percent),Tennessee (up 37 percent), and Michigan (up 22 percent) — all non-judicialforeclosure states.
Divergenttrends continue in judicial and non-judicialstates
First quarter foreclosure activity in the 26 judicialor quasi-judicial states combined increased 6 percent from the first quarter of2012, while first quarter foreclosure activity in the 24 judicial statesdecreased 44 percent during the same time period.
Similarly,March foreclosure activity increased 4 percent annually in the judicial statescombined but decreased 44 percent annually in the non-judicial statescombined.
Florida, Nevada, Illinois posthighest foreclosure rates in first quarter
There were atotal of 85,671 Florida properties with foreclosure filings in the firstquarter, the most of any state and one in every 104 housing units — thenation’s highest state foreclosure rate and nearly three times the nationalaverage of one in every 296 housing units. Floridaforeclosure activity in the first quarter increased 7 percent fromthe previous quarter and was up 17 percent from the first quarter of2012.
Nevada foreclosure activity increased 13 percent in thefirst quarter compared to the previous quarter, helping the state post thenation’s second highest foreclosure rate. One in every 115 Nevada housing unitshad a foreclosure filing during the quarter. First quarter foreclosure activityin Nevada was still down 18 percent from a year ago, but the quarterly increasewas driven largely by a recent uptick in foreclosure starts. Nevada foreclosurestarts in March increased 88 percent from a year ago to an 18-monthhigh.
Illinois foreclosure activity in the first quarterdecreased 2 percent from the previous quarter and was down 5 percent from ayear ago, but the state’s foreclosure rate — one in every 147 housing unitswith a foreclosure filing during the quarter — still ranked third highestnationwide. The annual decrease in the first quarter followed four consecutivequarters with annual increases in Illinois foreclosureactivity.
Ohio foreclosure activity increased annually forthe fourth consecutive quarter in the first quarter, helping the state post thenation’s fourth highest foreclosure rate — one in every 188 housing units witha foreclosure filing.
Georgia foreclosure activity in thefirst quarter decreased annually for the third consecutive quarter, but thestate still posted the nation’s fifth highest foreclosure rate — one in every200 housing units with a foreclosure filing.
Other stateswith foreclosure rates ranking among the top 10 were Arizona (one in every 202housing units with a foreclosure filing), Washington (one in 220 housing units),Maryland (one in 254 housing units), South Carolina (one in 254 housing units),and California (one in 266 housingunits).
Florida cities account for seven of 10highest metro foreclosure rates in first quarter
One inevery 79 housing units in the Miami metro area had a foreclosure filing in thefirst quarter of 2013, more than three times the national average and highestamong metropolitan statistical areas with a population of 200,000 ormore.
Six other Florida metro areas documented foreclosurerates that ranked among the top 10: Orlando at No. 2 (one in every 86 housingunits with a foreclosure filing); Ocala at No. 3 (one in 92 housing units);Tampa at No. 5 (one in 100 housing units); Jacksonville at No. 7 (one in 105housing units); Palm Bay-Melbourne-Titusville at No. 8 (one in 109 housingunits); and Lakeland at No. 10 (one in 128 housingunits).
Other cities with foreclosure rates in the top 10were Las Vegas at No. 4 (one in 99 housing units); Rockford, Ill., at No. 6(one in 102 housing units); and Chicago at No. 9 (one in 116 housingunits).
Days to foreclose at record 477 days,biggest increases in non-judicial states
U.S.properties foreclosed in the first quarter took an average of 477 days tocomplete the foreclosure process, up from 414 days in the previous quarter andup from 370 days in the first quarter of 2012. It was the highest averagenumber of days to foreclose going back to the first quarter of 2007.
Theaverage time to complete a foreclosure increased from the previous quarter in39 states, led by Oregon (up 61 percent), Arkansas (up 42 percent), Texas (up40 percent), Tennessee (up 37 percent), and Michigan (up 22 percent) — allnon-judicial foreclosure states.
Despite a 4 percent decreasein the average time to complete a foreclosure from the previous quarter, NewYork continued to register the longest state foreclosure timeline at 1,049 daysfrom foreclosure start to bank repossession (REO). New Jersey came in secondhighest at 1,002 days followed by Florida at 893 days, Hawaii at 824 days, andIllinois at 720 days.
Texas documented the shortest time tocomplete a foreclosure at 159 days despite a 40 percent increase from the previousquarter. Virginia documented the second shortest foreclosure timeline at 166days, followed by Delaware at 168 days, Maine at 182 days, and Alabama at 186days.
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 andquarter — broken out by type of filing. Some foreclosure filings entered intothe database during a month or quarter may have been recorded in previousmonths or quarters. 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 offoreclosure: 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 by a bank).For the quarterly report, if more than one foreclosure document is received fora property during the quarter, only the most recent filing is counted in thereport. Both the quarterly and monthly reports check if the same type ofdocument was filed against a property previously. If so, and if that previousfiling occurred within the estimated foreclosure timeframe for the state wherethe property is located, the report does not count the property again in thecurrent month or quarter.
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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