ForeclosureStarts Down Nationwide But Trending Higher in SeveralStates
Nevada, Florida, Ohio,Illinois, South Carolina Post Top 5 State ForeclosureRates
IRVINE, Calif. – May 9, 2013 —RealtyTrac® (www.realtytrac.com), theleading online marketplace for foreclosure properties and real estate data,today released its U.S. Foreclosure Market Report™ for April 2013, which showsforeclosure filings — default notices, scheduled auctions and bankrepossessions — were reported on 144,790 U.S. properties in April, adecrease of 5 percent from the previous month and down 23 percent from April2012. Total foreclosure activity in April was at the lowest level sinceFebruary 2007, a 74-month low.
The report also shows one inevery 905 U.S. housing units with a foreclosure filing during themonth.
“The April numbers indicate thatthe pig is moving through the python when it comes to deferred foreclosures injudicial foreclosure states,” said Daren Blomquist, vice president atRealtyTrac. “Foreclosure starts have been increasing for several months in manyof the judicial states, and now that increased volume is showing up in thesecond stage of the process: the public foreclosure auction. Scheduledforeclosure auctions in judicial states jumped to a 30-month high in April,evidence that lenders are serious about moving forward with completing theforeclosure process — either through repossession or sale to a third partyinvestor at public auction.
“Meanwhile, foreclosure startsare bouncing higher in a handful of non-judicial states where servicers areadjusting to legislation designed to prevent improper foreclosures,” Blomquistcontinued. “This includes Nevada, Washington and Arkansas, where foreclosurestarts have been increasing on an annual basis since late 2012, along withOregon and California, where foreclosure starts are still down from a year agobut have been moving steadily higher in recentmonths.”
High-level findings from thereport:
- Scheduledjudicial foreclosure auctions (NFS) increased 22 percentfrom March to April and were up 31 percent from a year ago to the highest levelsince October 2010 — a 30-month high.
- Scheduled foreclosureauctions increased from a year ago in 15 of the 26 judicial or quasi-judicialforeclosure states, including Maryland (199 percent increase), New Jersey (91percent increase), Ohio (73 percent increase), Oklahoma (57 percent increase),and Florida (55 percent). Scheduled foreclosure auctions reached a 68-monthhigh in Ohio, a 31-month high in Maryland, a 27-month high in New Jersey, andan 18-month high in Oklahoma.
- Scheduled non-judicial foreclosure auctions (NTS) in Aprilwere down 7 percent from March and down 43 percent from April 2012 to thelowest level since December 2005 — an 88-month low.
- A total of 70,133 U.S. properties started the foreclosure process in April,down 4 percent from the previous month and down 28 percent from a year ago.
- Despite the nationwidedecline, 22 states reported increasing foreclosure starts from the previousmonth, including New Jersey (138 percent increase), Connecticut (46 percentincrease), Texas (37 percent increase), Georgia (35 percent increase), Oregon(16 percent increase), and California (13 percent increase). Foreclosure startsreached a 36-month high in Connecticut, a 27-month high in New Jersey, and wereup on a monthly basis for the third consecutive month in California afterhitting a 90-month low in January, when new legislation impacting theforeclosure process took effect.
- Lenders repossessed 34,997 U.S. properties in April, down 20 percent from Marchand down 32 percent from April 2012 to the lowest level since July 2007 — a69-month low.
- Lender repossessions(REO) decreased from a year ago in 37 states and the District of Columbia inApril, but some notable exceptions where REO activity increased from a year agoincluded Washington (164 percent increase), Maryland (98 percent increase),Oklahoma (19 percent increase), and Ohio (17 percent increase).
- Nevada posted the nation’s highest state foreclosure rate for the second monthin a row despite a 15 percent monthly decrease in foreclosureactivity.
- Akron, Ohio, posted thenation’s highest metro foreclosure rate in April thanks in part to a 147percent annual increase in overall foreclosure activity. One other Ohio city(Columbus), along with five Florida cities, Las Vegas, Myrtle Beach, S.C. andChicago also registered top 10 metro foreclosure rates in April.
- As of the beginning of May, A total of 11.3 million mortgages nationwide wereseriously underwater, meaning combined amount of mortgages secured by the homewas at least 25 percent more than the estimated value of the home. Thatrepresented 26 percent of all outstanding mortgages, but was down nearly 1.5million from the 12.8 million seriously underwater mortgages in May2012.
Local brokerquotes from the RealtyTrac Network
- “The jump in scheduled foreclosure auctions should bring some much neededrelief to both the Oklahoma City and Tulsa areas, where inventory is extremelytight, as many of these properties will end up repossessed by lenders and thenlisted for sale,” said Sheldon Detrick,CEO of Prudential Alliance Realty in Oklahoma City and Prudential DetrickRealty in Tulsa. “Local buyers will snap these up quickly, whether at theforeclosure auction itself or once a foreclosed home is listed for sale. Theeconomy here is strong and well-priced properties are selling above theirasking prices — most with multiple offers.”
- “The increase in NODs isan expected result of the California Homeowner Bill of Rights that took effectin January,” said Rich Cosner,president of Prudential California Realty covering Orange,Riverside and San Bernardino counties in Southern California. “This increase inNODs will put no downward pressure on prices because demand for property is sohigh. It may move some homeowners, who have been living in their home for along time without making payments, to put their home on the market, but youcould put five times the number of NODs on the market and the homes would besold in less than 30 days.”
Nevada,Florida, Ohio post highest state foreclosure rates
Nevada’sforeclosure rate ranked highest among the states for the second monthin a row in April, reporting one in every 360 housing units with a foreclosurefiling during the month — more than twice the national average. A total of3,227 Nevada properties had a foreclosure filing in April, down 15 percent fromthe previous month and down 17 percent from a year ago — although Nevadaforeclosure starts (NODs) were still up 40 percent on an annualbasis.
Florida foreclosure starts dropped 27 percent fromMarch to April, but for the second month in a row the state posted the nations’second highest foreclosure rate: one in every 363 housing units with a foreclosurefiling. Although the state’s foreclosure starts decreased annually for thesecond straight month, scheduled foreclosure auctions in Florida (NFS)increased 55 percent from a year ago in April — the fourth straight month withan annual increase in scheduled foreclosure auctions. FloridaREOs in April increased 9 percent from a year ago, and the state hasposted annual increases in REOs in 15 of the last 16months.
Ohio REOs and scheduled foreclosure auctions (NFS)both increased on an annual basis in April, helping boost the state’sforeclosure rate to the nation’s third highest: one in every 427 housing unitswith a foreclosure filing. April was the first month since November 2007 thatOhio’sforeclosure rate has ranked in the top three. A total of 11,991 Ohioproperties had a foreclosure filing in April, up 12 percent from March and up23 percent from April 2012. Scheduled foreclosure auctions in Ohio jumped 33percent from the previous month and were up 73 percent from a year ago to a68-month high.
Illinois foreclosure activity decreased 12percent monthly and was down 17 percent annually, but the state still postedthe nation’s fourth highest foreclosure rate: one in every 501 housing unitswith a foreclosure filing.
South Carolina foreclosureactivity increased 14 percent monthly and was up 21 percent annually, helpingthe state to post the nation’s fifth highest foreclosure rate: one in every 590housing units with a foreclosure filing.
Other states withforeclosure rates ranking among the top 10 highest were Connecticut (one inevery 635 housing units with a foreclosure filing), Maryland (one in every 650housing units), Georgia (one in every 682 housing units), Delaware (one inevery 703 housing units), and Arizona (one in every 726 housingunits).
Top 10metro foreclosure rates in Ohio, Florida, Nevada, South Carolina andIllinois
One in every 211 housing units in Akron, Ohio,had a foreclosure filing in April, more than four times the national averageand the highest foreclosure rate among metropolitan statistical areas with apopulation of 200,000 or more.
Another Ohio city, Columbus,also ranked among the top 10 metro foreclosure rates in April. One in every 326Columbus housing units had a foreclosure filing during the month, sixth highestamong metro areas nationwide.
Five Florida cities postedforeclosure rates in April that ranked among the nation’s top 10: Ocala at No.2 (one in every 225 housing units with a foreclosure filing); Miami at No. 3(one in every 269 housing units); Orlando at No. 4 (one in every 287);Jacksonville at No. 7 (one in every 345 housing units); and Tampa at No. 9 (onein every 384 housing units).
Other cities in the top 10 wereLas Vegas at No. 5 (one in every 302 housing units); Myrtle Beach, S.C., at No.8 (one in every 365 housing units); and Chicago at No. 10 (one in every 389housing units).
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:Default — Noticeof 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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RealtyTrac (www.realtytrac.com) is theleading supplier of U.S. real estate 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.
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