ForeclosureStarts on Pace to Hit 800,000 for Year, REOs Nearly 500,000 forYear
Florida, Nevada, Illinois PostHighest State Foreclosure Rates in First Half of Year
IRVINE,Calif. – July 11, 2013 — RealtyTrac® (www.realtytrac.com), theleading online marketplace for real estate data, today released its Midyear2013 U.S. Foreclosure Market Report™, which shows a total of 801,359 U.S.properties with foreclosure filings — default notices, scheduled auctions andbankrepossessions — in the first half of 2013, a 19 percent decrease fromthe previous six months and down 23 percent from the first half of 2012. Thereport also shows that 0.61 percent of all U.S. housing units (one in 164) hadat least one foreclosure filing in the first six months of theyear.
High-levelfindings from the report:
- A totalof 127,790 U.S. properties had foreclosure filings in June, down 14 percent fromthe previous month and down 35 percent from a year ago to the lowest monthlylevel since December 2006 — a six and a half yearlow.
- U.S. foreclosure startsin June dropped 21 percent from the previous month and were down 45 percentfrom a year ago to the lowest monthly level since December 2005 — a seven and ahalf year low. Year to date through June, 409,491 foreclosure starts have beenfiled nationwide, on pace to reach more than 800,000 for the year, which wouldbe down from 1.1 million foreclosure starts in2012.
- Foreclosure starts in Junedecreased from the previous month in 38 states, including Nevada (down 84percent), Colorado (down 62 percent), New Jersey (down 40 percent), Illinois(down 39 percent) and Florida (down 26percent).
- Bank repossessions (REO) inJune decreased 9 percent from the previous month and were down 35 percent froma year ago. Year to date through June, a total of 248,538 bank repossessionshave occurred nationwide, on pace for nearly 500,000 for the year, which wouldbe down from more than 671,000 in 2012.
- Bank repossessions inJune decreased from a year ago in 34 states, but there were some notable exceptionswhere bank repossessions were up from a year ago, including Arkansas (up 143percent), Oklahoma (up 103 percent), Maryland (up 74 percent), Washington (up71 percent), New Jersey (up 33 percent), and New York (up 21percent).
- Judicial foreclosureauctions (NFS) were scheduled for 28,296 U.S. properties in June, up less than1 percent from May but up 34 percent from June 2012. States with substantialannual increases in scheduled judicial foreclosure auctions included New Jersey(up 103 percent), Florida (up 100 percent), Maryland (up 94 percent), New York(up 66 percent), and Illinois (up 65 percent to a 35-monthhigh).
- Florida, Nevada, Illinois,Ohio and Georgia posted the top five state foreclosure rates for the first halfof the year, while five Florida cities posted the top five metro foreclosurerates: Miami, Orlando, Jacksonville, Ocala, andTampa.
“Halfway through 2013 it is becomingincreasingly evident that while foreclosures are no longer a problem nationallythey continue to be a thorn in the side of several state and local markets,particularly where a backlog of delayed distress has built up thanks to alengthy foreclosure process,” said Daren Blomquist, vice president atRealtyTrac. “The increases in judicial foreclosure auctions demonstrate thatthese delayed foreclosure cases are now being moved more quickly through toforeclosure completion. Given the rising home prices in most of these markets,it is an opportune time for lenders to dispose of these distressed properties,either at the foreclosure auction to a third-party buyer, or by repossessingthe property at the auction and subsequently selling it as a bank-ownedhome.
Local broker quotes from the RealtyTracNetwork
- “The increase in bankrepossessions in Oklahoma is due to a release of ‘zombie foreclosures,’ orhomes where the foreclosure process has not been completed by the bank for avariety of reasons,” said Sheldon Detrick, CEO of PrudentialAlliance Realty in Oklahoma City and PrudentialDetrick Realty in Tulsa, Okla. “This is the tail end of a longprocess. We are actually seeing fewer foreclosure housing listings than we’vehad in six years. That trend will likely continue and we will see a dramaticdrop in foreclosures in the area movingforward.”
- “The drop in foreclosurestarts in Reno is not surprising since NODs were at a 20-month high lastmonth,” said Craig King, COO at ChaseInternational brokerage, which covers the Reno and Lake Tahoemarkets. “New laws were passed in this year’s session of the Nevada legislatureaffecting homeowner’s rights and distressed property. Lenders, Realtors, andattorneys are working to sort out these new laws, which could take some time.There will be a long tail on the distressed property market for several moreyears as there are a huge number of Nevada mortgages still underwater, but theNOD and scheduled foreclosure auction numbers have come down very substantiallyand will stay down from the highs.The distressed market is a fraction of whatit was at the peak, and the majority of agents have shifted their focus to theequity market.”
- “The New Yorkmarket is continuing to have increased sales over last year,” said EmmettLaffey, CEO of LaffeyFine Homes International, covering the five boroughs of New York Cityand Long Island. “Even as the pending foreclosures begin to hit the market,sales most certainly will continue to be brisk due to the aggressive pricing onforeclosures. Furthermore, with mortgage rates on the rise over the last fewweeks buyers will be anxious to buy and lock in their mortgage rate before theygo even higher.”
- “Allindications point to the fact that the Nashville metro area has passed its peakin the foreclosure market, closely resembling the 2005 to 2006 sustainable rateof absorption,” said Bob Parks, CEO of Bob ParksRealty in Nashville, Tenn. “The area does still have asubstantial amount of shadow inventory that will hit the market at some point;however, these properties will be quickly absorbed by individual buyersreturning to the area. We are seeing home prices continue to recoverin the Nashville metro area and the market has showed continual gains over thepast two years.”
Florida, Nevada,Illinois post top state foreclosure rates in first half of2013
Florida posted the nation’s highest stateforeclosure rate in the first half of the year: 1.74 percent ofhousing units with a foreclosure filing (one in every 58) during the six-monthperiod — nearly three times the national average. A total of 155,264 Floridaproperties had a foreclosure filing in the first six months of the year, themost of any state and up 12 percent from a year ago. In June Floridaforeclosure starts (LIS) decreased 23 percent from a year ago but scheduledforeclosure auctions increased 100 percent and bank repossessions increased 14percent during the same time period.
Despite a 58 percentmonth-over-month drop in foreclosure activity in June, Nevada posted thenation’s second highest foreclosure rate in the first half of 2013: 1.40percent of housing units with a foreclosure filing (one in every 71) during thesix-month period. A total of 16,291 Nevada properties had a foreclosure filingin the first half of 2013, up 12 percent from the previous six months but down21 percent from a year ago. New state legislation (AB300) that changes the foreclosure process in Nevada took effect inJune.
Illinoisforeclosure activity in the first half of 2013 decreased from theprevious six months and a year ago, but the state still posted the nation’sthird highest foreclosure rate: 1.20 percent of housing units with aforeclosure filing (one in 83) during the six-month period. In June Illinoisforeclosure starts (LIS) decreased 68 percent from a year ago and bankrepossessions were down 49 percent from a year ago, but scheduled foreclosureauctions increased 65 percent during the same time period to the highestmonthly level since July 2010.
Ohioforeclosure activity in the first half of 2013 increased 2 percentfrom a year ago, helping the state post the nation’s fourth highest foreclosurerate: 0.96 percent of housing units with a foreclosure filing (one in every104). Georgia posted the nation’s fifth highest state foreclosure rate duringthe first half of the year: 0.86 percent of housing units with a foreclosurefiling (one in every 117) despite a 47 percent year-over-year drop inforeclosure activity.
Other states with foreclosure ratesamong the 10 highest in the first six months of 2013 were Arizona (0.81 percentof housing units with a foreclosure filing), South Carolina (0.80 percent),Maryland (0.80 percent), Washington (0.78 percent), and Indiana (0.66percent).
Florida accounts for top five metroforeclosure rates, 12 of top 20
Miami posted thehighest foreclosure rate in the first half of 2013 among metropolitanstatistical areas with a population of 200,000 or more: 2.35 percent of housingunits with a foreclosure filing (one in every 43) during the six-month period –nearly four times the national average.
Four other Floridacities joined Miami to round out the top five metro foreclosure rates in thefirst half of 2013: Orlando at No. 2 (1.94 percent of housing units with aforeclosure filing); Jacksonville at No. 3 (1.91 percent); Ocala at No. 4 (1.85percent); and Tampa at No. 5 (1.74 percent). Florida cities accounted for atotal of 12 of the top 20 metro foreclosure rates.
Metrosoutside of Florida with foreclosure rates in the 20 highest nationwide wereRockford, Ill., at No. 6 (1.73 percent of housing units with a foreclosurefiling); Las Vegas at No. 8 (1.59 percent); Chicago at No. 9 (1.52 percent);Akron, Ohio at No. 12 (1.32 percent); Columbus, Ohio at No. 14 (1.22 percent);Stockton, Calif., at No. 17 (1.16 percent); Atlanta at No. 18 (1.11 percent);and Cleveland at No. 19 (1.09 percent).
Foreclosureprocess lengthens nationwide,
U.S. propertiesforeclosed in the second quarter of 2013 were in the foreclosure process anaverage of 526 days from the initial public foreclosure notice to the completedforeclosure, up 10 percent from 477 days in the firstquarter.
The average time to foreclose was 1,033 days in bothNew York and New Jersey — the longest among the states. New York’s timeline wasdown 2 percent from the previous quarter while New Jersey’s timeline increased3 percent. Other states with the longest average foreclosure timelines wereFlorida (907 days), Hawaii (824 days) and Illinois (817days).
The average time to foreclose was 184 days inVirginia, the shortest of any state. Other states with average foreclosuretimelines below the national average included Texas (209 days), Minnesota (239days), Georgia (240 days), and Arizona (255 days).
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 is located.
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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