Aggregate foreclosure activity as
measured by foreclosure filings rose 1 percent in August compared to September
but was down 15 percent from one year earlier.
According to the U.S. Foreclosure Market Report released by RealtyTrac
on Thursday there were 193,508 filings during the month or one for every 681
RealtyTrac is an Irvine, California firm
that tracks three categories of foreclosure filings gathered from county level
Twenty states had annual increases
in foreclosure activity, led by judicial foreclosure states such as New Jersey,
New York, Maryland, Illinois, and Pennsylvania. Foreclosure activity in the 24
non-judicial states and District of Columbia combined decreased 31 percent
annually, although 15 non-judicial states and DC posted monthly increases.
Notices of Default and scheduled
foreclosure auctions rose after three straight months of decline. There were first-time filings on 99,405
properties in August, a 1 percent increase from July. The number of filings was still down 13
percent from one year earlier a month when filings were at a 17 month high.
Foreclosures were completed on
52,380 properties in August, down 2 percent from July and 19 percent from
August 2011. Bank repossessions have decreased
on an annual basis for 22 straight months.
Foreclosure activity is declining,
albeit unevenly nationally, some states still face major problems. In Illinois there was a 29 percent jump in
overall activity in August, the 8th month when filings increased,
giving the state the nation's highest rate for the first time. A total of 17,781 properties, or in every 298
housing units, received some type of filing during the month. The rate was up 42 percent since August 2011.
Illinois saw double-digit increases in all three types of filings and scheduled
auctions were up 116 percent from a year earlier.
In Florida filings rose on an annual
basis for the seventh time in the last eight months, increasing 7.39 percent
from August and 16.4 percent year-over-year.
Foreclosure states increased 26 percent on an annual basis and
repossessions 12 percent. Florida has
the nation's second highest foreclosure rate with one in every 328 units
receiving a filing.
The foreclosure rate is falling in
California, down 32 percent since last August, but the state still maintains
the number three position. One in every
340 housing units in the state, twice the national average, had a filing in
August. The other states in the top five were Arizona (one in every 360 housing
units, and Nevada, (one in 402.)
Foreclosure starts increased
annually in 18 states, including Washington (143 percent), Pennsylvania (129
percent), Alabama (102 percent), New Jersey (101 percent) and New York (63
percent). Starts were down significantly
in Oregon (89 percent), Nevada (64 percent) and Utah (57 percent).
REO activity decreased annually in
35 states and the District of Columbia with big decreases in Nevada (76
percent), Oregon (57 percent), and Virginia (56 percent). Washington, Utah, Massachusetts, Pennsylvania,
and Colorado all had decreases exceeding 42 percent. Foreclosure activity was up 44 percent and 41
percent in Kentucky and Illinois respectively.
Foreclosure activity in August
increased from the previous month in eight of the 10 cities with the nation's
highest foreclosure rates among metropolitan areas with a population of 200,000
"Bucking the national trend,
deferred foreclosure activity boiled over in several states in August," said
Daren Blomquist, vice president of RealtyTrac. "In judicial states such as
Florida, Illinois, New Jersey and New York, this was a continuation of a trend
we've been seeing for several months now. The increases in Florida and Illinois
pushed foreclosure rates in those states to the two highest in the country -
supplanting the non-judicial states of Arizona, California, Georgia and Nevada.
Previous to August, the nation's top two state foreclosure rates have been from
those four non-judicial states every month since December 2010.
"Meanwhile foreclosure activity in
most non-judicial states stayed on a downward trajectory in August, with a few
exceptions," Blomquist continued. "Most notably, Washington State documented a
38 percent annual increase in foreclosure activity in August after 16 straight
months of year-over-year declines. The rebounding activity in Washington State
is likely the result of lenders catching up with foreclosures delayed by a
state law that took effect in July 2011 and allowed homeowners facing
foreclosure to request mediation. This rebounding pattern will likely be
repeated in the coming months in other states that have passed legislation
delaying the foreclosure process."