Foreclosure activity dipped
significantly in May RealtyTrac reported on Tuesday with a decrease of 5
percent in foreclosure filings compared to those in April. RealtyTrac's U.S. Foreclosure Market Report
also noted a 26 percent decrease in filings compared to May 2013.
RealtyTrac reports on three categories
of legal filings - notices of default or foreclosure starts, scheduled
auctions, and bank repossessions or completed foreclosures. Aggregate filings in May numbered 109,824 or
one filing for every 1,199 U.S housing units.
Foreclosures were started on 49,240
properties in May, a 10 percent decrease from April and 32 percent fewer starts
than one year earlier. It was the fewest
starts recorded by RealtyTrac since December 2005, a 101-month low.
Foreclosure auctions were scheduled
on 47,085 properties, down 3 percent month over month and 22 percent on an
annual basis. It was the fewest auctions
scheduled in a single month since December 2006.
There were 20,373 foreclosures
completed during the month, a 6 percent and a 27 percent decrease from the two
earlier periods. It was an 82 month low
for completed foreclosures, the fewest since July 2007.
While foreclosure activity was down
on a national basis it rose in 21 states compared to April and 11 states saw
increases on an annual basis. The
largest annual increases in filings were posted in Massachusetts, up 58 percent
from May 2013 to an 18 month high and New Jersey where foreclosure activity has
increased on an annual basis for 23 of the last 27 months and was up 27 percent
in May. Other large annual increases
were posted by New York (+18 percent), and Indiana (+12 percent).
Foreclosure starts increased in 17
states compared to April and in 12 states on an annual basis. There were large annual increases in
Massachusetts (+178 percent), Indiana (+67 percent), and Delaware (+26
percent). Scheduled auctions were up
month-over-month in 27 states and increased annually in 16 with Utah, Oregon,
and New Jersey jumping 199 percent, 157 percent, and 70 percent respectively. Twenty-five
states had more bank repossessions in May than in April and 14 states posted
annual increases, most notably New York which has grown annually for 16 out of
the last 20 months, this time by 117 percent.
New Jersey increased for the 11th month out of 12, up 96
percent and Connecticut had a 15th consecutive increase, up 85
"It's not surprising that some of
the states with the longest foreclosure timelines are those with markets still
dealing with increasing foreclosure activity even as the country as a whole
continues to hit new lows," said Daren Blomquist, vice president at RealtyTrac.
"On the other hand, the increase in bank repossessions in some states with
shorter foreclosure timelines like California and Oregon demonstrates there is
still some pent-up foreclosure activity in those states as well."
The nation's highest overall
foreclosure rate continues to be in Florida.
Even with 10 consecutive months of annual decreases the state still had
a foreclosure filing on one in every 436 housing units in May, nearly three
times the national average.
Florida was followed by Maryland
with a filing on one in every 621 housing units. The state however did finally see a positive
change with overall foreclosure activity down percent on an annual basis after
22 consecutive increases.
Nevada is still in the top three
despite eight consecutive months with annual decreases and a 57 percent
year-over-year drop in May. One in every
717 housing unit in the state had a foreclosure filing in May.
Other states in the top five are
Illinois, one in 790 housing units; Ohio, one in 805; while New Jersey,
Delaware, Indiana, Connecticut, and South Carolina round out the top ten.