U.S. Foreclosure Activity Down 4 Percent in February to Lowest Level Since July 2006 Despite 9 Percent Rise in REOs

U.S. Foreclosure Activity on Track to Return to Pre-Crisis Levels by End of 2015

IRVINE, Calif. – March 19, 2015 — RealtyTrac® (www.realtytrac.com), the nation’s leading source for comprehensive housing data, today released its U.S. Foreclosure Market Report™ for February 2015, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 101,938 U.S. properties in February, a decrease of 4 percent from revised January numbers and down 9 percent from a year ago to the lowest level since July 2006. The report also shows a U.S. foreclosure rate of one in every 1,295 housing units with a foreclosure filing in February.

“Given that August 2006 was the peak of the housing bubble, this eight-and-a-half year low in foreclosure activity is a significant milestone and a sign that nationwide foreclosure activity is on track to return to historic norms this year — and is possibly even headed below historic norms given the skinny-jeans-tight lending standards over the past five years,” said Daren Blomquist, vice president at RealtyTrac. “In markets where foreclosures were processed more efficiently we are seeing foreclosure numbers now below pre-crisis levels in some cases. Conversely, the cleanup of deferred distress is continuing in markets where a logjam of in-limbo foreclosures is still lingering from the housing crisis — as evidenced by rebounding foreclosure activity in those markets.”

Despite the national decrease from a year ago, 24 states posted a year-over-year increase in overall foreclosure activity, including Massachusetts (up 53 percent; fifth consecutive month with an increase) and New York (up 19 percent; sixth consecutive month with an increase).

22 states post annual increase in foreclosure starts

Nationwide, 48,079 properties started the foreclosure process for the first time in February, down 5 percent from revised January numbers and down 7 percent from a year ago.

Despite the national decrease in foreclosure starts, 22 states posted year-over-year increases in foreclosure starts, including Nevada (up 153 percent; fourth consecutive month with an increase), Massachusetts (up 116 percent; 11th consecutive month with an increase), and Texas (up 5 percent; five out of last six months with increase).

25 states post annual increase in scheduled foreclosure auctions

Nationwide, 45,880 properties were scheduled for a future foreclosure auction in February, down 13 percent from revised January numbers and down 4 percent from a year ago to the lowest level since July 2006.

Despite the national decrease in scheduled foreclosure auctions — which can act as the foreclosure start in some states — 25 states posted a year-over-year increase in scheduled foreclosure auctions, including New York (up 146 percent; ninth consecutive month with an increase), Massachusetts (up 88 percent; third consecutive month with an increase), New Jersey (up 38 percent; 15th consecutive month with an increase), and Washington (up 17 percent; five out of last seven months with an increase).

15 states post annual increase in REOs

Nationwide, 24,305 properties were repossessed by lenders via foreclosure (REO) in February, up 9 percent from revised January numbers but down 20 percent from a year ago. February was the 27th consecutive month where REOs nationwide decreased on an annual basis.

Despite the national decrease in REOs compared to a year ago, 15 states posted year-over-year increases in REOs, including Maryland (up 70 percent; fifth consecutive month with an increase), New York (up 24 percent; four out of last five months with an increase), Ohio (up 23 percent; third consecutive month with an increase), and North Carolina (up 18 percent; three out of last four months with an increase).

Maryland, Nevada, Florida post highest state foreclosure rates

Maryland foreclosure activity decreased 1 percent compared to a year ago in February, but the state still posted the nation’s highest foreclosure rate: one in every 564 housing units with a foreclosure filing.

Nevada foreclosure activity in February increased 12 percent from a year ago driven primarily by a spike in foreclosure starts, and the state’s foreclosure rate was second highest in the nation for the second month in a row. One in every 569 Nevada housing units had a foreclosure filing during the month.

Florida posted the nation’s third highest state foreclosure rate — one in every 570 housing units with a foreclosure filing — despite a 35 percent decrease in foreclosure activity from a year ago.

Other states with foreclosure rates among the top 10 highest nationwide in February were Indiana (one in every 871 housing units with a foreclosure filing), Idaho (one in every 877 housing units), New Jersey (one in every 895 housing units), Illinois (one in every 906 housing units), Delaware (one in every 957 housing units), Ohio (one in every 1,000 housing units), and North Carolina (one in every 1,088 housing units).

Special methodology note: The U.S. Foreclosure Market Report for February 2015 includes revised numbers for January 2015 and also includes new coverage areas that were not covered in previous months thanks to a strategic initiative over the past year on the part of the RealtyTrac data acquisition team to expand coverage of foreclosure and other publicly recorded real estate data. For more details please reach out to the media contacts below.

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 2,500 counties nationwide using a combination of public record and proprietary sources, 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: Default — Notice 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.

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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.

Data Licensing and Custom Report Order

Investors, businesses and government institutions can contact RealtyTrac to license bulk foreclosure and neighborhood data or purchase customized reports. For more information please contact our Data Licensing Department at 800.462.5193 or datasales@realtytrac.com.

 About RealtyTrac

RealtyTrac is a leading supplier of U.S. real estate data, with nationwide parcel-level records for more than 130 million U.S. parcels that include property characteristics, tax assessor data, sales and mortgage deed records, default, foreclosure, auction, and Automated Valuation Models (AVMs) along with more than 45 key local and neighborhood dynamics for residential properties nationwide via its subsidiary, Homefacts.com.  RealtyTrac’s housing data is 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 and consumers, to help evaluate housing trends and make informed decisions about real estate.

 

Media Contacts:
Jennifer Von Pohlmann
949.502.8300, ext. 139
jennifer.vonpohlmann@realtytrac.com

Ginny Walker
949.502.8300, ext. 268
ginny.walker@realtytrac.com 

Data and Report Licensing:
800.462.5193
datasales@realtytrac.com

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