U.S. Foreclosure Activity Increases 2 Percent in October Driven by Continued Rise in Judicial Foreclosure Auctions

Scheduled  Judicial Foreclosure Auctions Increase Annually for 16th Straight  Month
Foreclosure  Starts Up Monthly for Second Straight Month, Big Jumps in FL, IL, CO

IRVINE, Calif. – Nov. 14, 2013 — RealtyTrac® (www.realtytrac.com), the nation’s leading  source for comprehensive housing data, today released its U.S. Foreclosure  Market Report™ for October, which shows foreclosure filings — default notices,  scheduled auctions and bank  repossessions — were reported on 133,919 U.S. properties in October, a 2  percent increase from the previous month but a 28 percent decrease from a year  ago. The report also shows one in every 978 U.S. housing units with a  foreclosure filing during the month.

High-level findings from the report:

  • There were a total of 30,023 scheduled judicial  foreclosure auctions (NFS) nationwide in October, up 10 percent from the  previous month and up 7 percent from a year ago — the 16th  consecutive month where judicial foreclosure auctions increased from a year  ago.
  • States with the biggest annual increases in  scheduled judicial foreclosure auctions included Maryland (up 177 percent),  Delaware (up 142 percent), New York (up 98 percent), New Jersey (up 97  percent), Pennsylvania (up 58 percent), Connecticut (up 35 percent), and  Florida (up 32 percent).
  • There were a total of 58,939 U.S. properties that  started the foreclosure process for the first time in October, up 2 percent  from the previous month but still down 34 percent from a year ago — the 15th  consecutive month where foreclosure starts have decreased on an annual basis.
  • Foreclosure starts were up from the previous month  in 22 states, including Colorado (up 124 percent), Florida (up 36 percent), and  Illinois (up 30 percent).
  • There were a total of 37,775 bank repossessions (REO)  nationwide in October, down 1 percent from the previous month and down 29  percent from a year ago — the 11th consecutive month where bank  repossessions have decreased annually.
  • Bank repossessions increased from a year ago in 15  states, including Oklahoma (up 59 percent), Maryland (up 54 percent), Virginia  (up 47 percent), Ohio (up 30 percent), and Washington (up 30 percent).
  • States with the five highest foreclosure rates in  October were Florida, Nevada, Maryland, Ohio and Illinois.
  • Among the nation’s 20 largest metro areas, the  highest foreclosure rates were in Miami, Tampa, Chicago, Baltimore and  Riverside-San Bernardino, Calif. The biggest annual increases in foreclosure  activity were in Baltimore (up 296 percent for 13th consecutive  month with an annual increase), Washington, D.C. (up 48 percent for fifth  consecutive month with an annual increase), New York (up 20 percent for 16th  consecutive month with an annual increase), Philadelphia (up 15 percent for  eighth consecutive month with an annual increase), and Miami (up 7 percent for  first annual increase after two consecutive months of annual decreases).

“The backlog of delayed judicial foreclosures  continues to make its way through the pipeline, with many of these properties  now being scheduled for the public auction after starting the foreclosure  process last year or earlier this year,” said Daren Blomquist, vice president  at RealtyTrac. “Lenders are likely moving these properties more rapidly to the  public auction given that there is strong demand from institutional buy-to-rent  investors at the auction and that rising home prices mean more of the loan  losses can be recouped, either by selling to an investor at the auction or by  repossessing the property and reselling as bank owned.”

Local broker quotes
“Some  people who defaulted three years ago are just now being contacted by the bank  to begin the foreclosure process.  This explains some of the  recent rise in bank repossessions in Oklahoma,” said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty covering the Oklahoma City and Tulsa markets. “When home prices were  heading downward banks would sometimes send default notices to homeowners but  allow them to stay in the home without making payments if the homeowner would  maintain the home and keep it in good condition.  Now that the economy is  improving and home prices are rising, banks are attempting to restructure the  loan or begin the foreclosure process.”

“Homeowners and homebuyers are now able to  negotiate home sales together without a bank being involved.  It’s the way real estate should be, and it’s  nice to be back to a more normal real estate market again,” said Rich Cosner, President  of Prudential  California Realty, covering Orange, Riverside and San Bernardino counties  in Southern California.

“The  increase in Reno-area foreclosure activity is likely the result of lenders  pushing through some foreclosures before the new Nevada Homeowner Bill of  Rights took effect in October,” said Craig King, COO of Chase  International, covering the Reno  and Lake Tahoe markets. “Despite that increase, we’re making steady  progress away from the problems that plagued the real estate industry in  Northern Nevada. Short sales and foreclosures used to be 85 percent of the  market and equity sales used to be 15, and now it’s exactly flipped.”

“The October foreclosure numbers provide evidence that Ohio has worked through much  of the backlog of foreclosure activity here, and now we are seeing lenders  taking far quicker action in initiating the foreclosure process on mortgages in  default,” said Michael Mahon, Executive Vice President/Broker for HER Realtors covering Cincinnati, Dayton and Columbus, Ohio.   “Low market inventory levels and increasing home prices are also prompting  lenders to initiate the foreclosure process much more quickly.”

Florida, Nevada and Maryland post top state  foreclosure rates
Florida  foreclosure activity in October increased 22 percent from the previous  month, driven primarily by a 36 percent month-over-month increase in  foreclosure starts, helping the state regain the nation’s highest foreclosure  rate after two months in the second spot. A total of 26,962 Florida properties  had foreclosure filings during the month, one in every 332 housing units.

Nevada  foreclosure activity in October dropped 39 percent from the previous month  off a 21-month high in September, but the state still posted the nation’s  second highest foreclosure rate: one in every 407 housing units with a  foreclosure filing. New legislation called the Nevada Homeowner Bill of Rights  that changes the foreclosure process in the state took effect in October.

Maryland posted the  nation’s third highest state foreclosure rate in October, up from the No. 4  spot in September, thanks to a 10 percent monthly increase and 201 percent  year-over-year increase in foreclosure activity — the 16th  consecutive month where Maryland foreclosure activity has increased on an  annual basis. One in every 516 Maryland housing units had a foreclosure filing  in October.

Other states with  foreclosure rates among the nation’s 10 highest in October were Ohio (one in  every 525 housing units with a foreclosure filing), Illinois (one in every 552  housing units), Utah (one in every 695 housing units), South Carolina (one in  every 729 housing units), Delaware (one in every 748 housing units),  Connecticut (one in every 752 housing units), and Georgia (one in every 897  housing units).

Miami, Tampa, Chicago, Baltimore and Riverside post  top metro foreclosure rates
Among the nation’s 20  largest metropolitan statistical areas, Miami posted the highest foreclosure  rate: one in every 264 housing units with a foreclosure filing. Miami  foreclosure activity in October increased 7 percent from a year ago boosted by  a 51 percent jump in scheduled foreclosure auctions.

Scheduled foreclosure  auctions increased 40 percent year-over-year in Tampa, Fla., helping that metro  area post the nation’s second highest foreclosure rate among the 20 largest  metro areas in October: one in every 302 housing units with a foreclosure  filing.

Chicago foreclosure  activity dropped annually for the 11th consecutive month, but a 30  percent month-over-month jump in foreclosure starts helped the metro area’s  foreclosure rate rank third highest among the 20 largest metro areas nationwide  in October. On in every 427 Chicago-area housing units had a foreclosure filing  during the month.

Baltimore foreclosure  activity increased 296 percent from a year ago — the 13th  consecutive month with an annual increase — and the metro area’s foreclosure  rate of one in every 490 housing units with a foreclosure filing ranked fourth  highest among the nation’s 20 largest metros in October.

Despite a 60 percent  annual decrease in foreclosure activity in October, the inland California metro  area of Riverside-San Bernardino posted a foreclosure rate that was above the  national average and fifth highest among the nation’s 20 largest metros: one in  every 531 housing units with a foreclosure filing.

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.

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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.

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About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the nation’s leading source of comprehensive housing  data, with more than 1.5 million active default, foreclosure auction and bank-owned properties,  and more than 1 million active for-sale listings on its website, which also  provides essential housing information for more than 100 million homes  nationwide. This information includes property characteristics, tax assessor  records, bankruptcy status and sales history, along with 20 categories of key  housing-related facts provided by RealtyTrac’s wholly-owned subsidiary, Homefacts®. RealtyTrac’s foreclosure reports 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 and consumers, to help  evaluate housing trends and make informed decisions about real estate.

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