SOURCE: RealtyTrac

RealtyTrac

November 12, 2009 00:00 ET

Foreclosure Activity Slows for Third Straight Month According to RealtyTrac® U.S. Foreclosure Market Report

October Foreclosure Activity Down 3 Percent From Previous Month, Up 19 Percent From October 2008

IRVINE, CA--(Marketwire - November 12, 2009) - RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its October 2009 U.S. Foreclosure Market Report™, which shows foreclosure filings -- default notices, scheduled foreclosure auctions and bank repossessions -- were reported on 332,292 U.S. properties during the month, a decrease of 3 percent from the previous month but still up nearly 19 percent from October 2008. The report also shows one in every 385 U.S. housing units received a foreclosure filing in October.

"Three consecutive monthly declines is unprecedented for our report, and on first blush an indication that the foreclosure tide may be turning," said James J. Saccacio, chief executive officer of RealtyTrac. "However, the fundamental forces driving foreclosure activity in this housing downturn -- high-risk mortgages, negative equity, and unemployment -- continue to loom over any nascent recovery. And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states."

Nevada, California, Florida post top state foreclosure rates

Despite a 26 percent decrease in foreclosure activity from the previous month, Nevada continued to document the nation's highest state foreclosure rate -- one in every 80 housing units received a foreclosure filing in October. A total of 13,842 Nevada properties received a foreclosure filing during the month, a 4 percent decrease from October 2008 and the first ever year-over-year decrease in Nevada since RealtyTrac began tabulating the year-over-year change in January 2006. Nevada default notices were down 10 percent from October 2008, and scheduled foreclosure auctions were down 6 percent from October 2008, while bank repossessions were up 8 percent from October 2008. A new foreclosure mediation program implemented by state law (AB 149) in July may be slowing the inflow of distressed properties into the foreclosure pipeline.

With one in every 156 housing units receiving a foreclosure filing in October, California posted the nation's second highest state foreclosure rate for the second month in a row. A total of 85,420 California properties received a foreclosure filing during the month, a decrease of 1 percent from the previous month but still nearly 50 percent above the total reported in October 2008. The state's default notices and scheduled foreclosure auctions were up 120 percent and 73 percent respectively from October 2008, when California foreclosure activity was in the midst of a three-month trough after a law (SB 1137) requiring lenders to give distressed homeowners extra notification before initiating foreclosure took effect in September 2008.

Florida posted the third highest state foreclosure rate, with one in every 168 housing units receiving a foreclosure filing in October. A total of 51,911 Florida properties received a foreclosure filing during the month, a nearly 6 percent decrease from the previous month and a decrease of 4 percent from October 2008. It was the first year-over-year decrease in overall Florida foreclosure activity since July 2006.

Other states with foreclosure rates ranking among the nation's 10 highest were Arizona, Idaho, Illinois, Michigan, Georgia, Maryland and Utah.

Four states account for more than 50 percent of national total

Four states accounted for 52 percent of the nation's total foreclosure activity in October: California, Florida, Illinois and Michigan.

Illinois posted the third highest state total after California and Florida, with 19,946 properties receiving a foreclosure filing in October -- a 56 percent spike from the previous month and the highest monthly total for Illinois since RealtyTrac began issuing its report in January 2005. The state's foreclosure rate jumped from No. 11 in September to No. 6 in October, and it was the only state with a foreclosure rate in the top 10 to post a monthly increase in foreclosure activity. A recent state law (SB 2513) that gives distressed homeowners an extra grace period to seek counseling to help avoid foreclosure may have created some pent-up foreclosure activity in the state. After the law went into effect in April, Illinois foreclosure activity decreased for three straight months before beginning to climb again.

Michigan registered the fourth highest state foreclosure activity total despite a nearly 2 percent decrease from the previous month. A total of 16,468 Michigan properties received a foreclosure filing in October, an increase of nearly 45 percent from October 2008.

Other states with totals among the 10 highest in the country were Nevada (13,842), Arizona (13,345), Georgia (12,468), Texas (11,798), Ohio (11,646) and New Jersey (7,435).

Three states account for all top 10 metro foreclosure rates

Despite a 27 percent decrease in foreclosure activity from the previous month, Las Vegas continued to document the nation's highest foreclosure rate among metropolitan areas with a population of at least 200,000. One in every 68 Las Vegas housing units received a foreclosure filing in October -- more than five times the national average.

Seven of the top 10 metro foreclosure rates were in California, led by Vallejo-Fairfield at No. 2 and Modesto at No. 3, both with one in every 81 housing units receiving a foreclosure filing. Other California cities in the top 10 were Riverside-San Bernardino-Ontario at No. 4 (one in 83), Bakersfield at No. 6 (one in 97), Merced at No. 7 (one in 100), Stockton at No 8 (one in 116), and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 130).

Metro areas in Florida accounted for the remaining two spots in the top 10: Cape Coral-Fort Myers at No. 5 (one in 92) and Orlando-Kissimmee at No. 9 (one in 117).

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 by state, county and metropolitan statistical area. 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: Default -- Notice of Default (NOD) and Lis Pendens (LIS); Auction -- Notice of Trustee 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). If more than one foreclosure document is received for a property during the month, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

          U.S. Foreclosure Market Data by State - October 2009


                                Properties with Foreclosure Filings
Rate                      -------------------------------------------------
Rank    State Name           NOD       LIS       NTS       NFS       REO
----    --------------    --------- --------- --------- --------- ---------
--      U.S.                 51,373    72,916    94,850    36,076    77,077
----    -------------     --------- --------- --------- --------- ---------
31      Alabama                   0         0     1,740         0       707
----    -------------     --------- --------- --------- --------- ---------
33      Alaska                    2         0       231         0        71
----    -------------     --------- --------- --------- --------- ---------
4       Arizona                   7         0    10,314         0     3,024
----    -------------     --------- --------- --------- --------- ---------
24      Arkansas                125         0     1,168         0       599
----    -------------     --------- --------- --------- --------- ---------
2       California           35,672         0    34,728         0    15,020
----    -------------     --------- --------- --------- --------- ---------
11      Colorado                 10         0     3,776         0     1,261
----    -------------     --------- --------- --------- --------- ---------
20      Connecticut               0     1,672         0       130       504
----    -------------     --------- --------- --------- --------- ---------
32      Delaware                  0         0         0       329       110
----    -------------     --------- --------- --------- --------- ---------
        District of
         Columbia               113         0        99         0        46
----    -------------     --------- --------- --------- --------- ---------
3       Florida                   0    31,380         0    13,639     6,892
----    -------------     --------- --------- --------- --------- ---------
8       Georgia                   0         0     8,034         0     4,434
----    -------------     --------- --------- --------- --------- ---------
17      Hawaii                  149         0       557         0       219
----    -------------     --------- --------- --------- --------- ---------
5       Idaho                 1,179         0     1,122         0       170
----    -------------     --------- --------- --------- --------- ---------
6       Illinois                  0    12,659         0     3,081     4,206
----    -------------     --------- --------- --------- --------- ---------
21      Indiana                   0     1,195         0     1,222     1,969
----    -------------     --------- --------- --------- --------- ---------
43      Iowa                      0         0       156         0       267
----    -------------     --------- --------- --------- --------- ---------
37      Kansas                    0       201         0       376       352
----    -------------     --------- --------- --------- --------- ---------
39      Kentucky                  0       434         0       382       348
----    -------------     --------- --------- --------- --------- ---------
38      Louisiana                 0       112         0       814       348
----    -------------     --------- --------- --------- --------- ---------
41      Maine                     0        76         0       216        71
----    -------------     --------- --------- --------- --------- ---------
9       Maryland                  0     2,831         0     3,044       786
----    -------------     --------- --------- --------- --------- ---------
15      Massachusetts             0     2,508         0     2,017       886
----    -------------     --------- --------- --------- --------- ---------
7       Michigan              6,263         0     5,674         0     4,531
----    -------------     --------- --------- --------- --------- ---------
27      Minnesota                 8         0     1,499         0     1,476
----    -------------     --------- --------- --------- --------- ---------
42      Mississippi               0         0       347         0       192
----    -------------     --------- --------- --------- --------- ---------
30      Missouri                  1         0     2,085         0     1,132
----    -------------     --------- --------- --------- --------- ---------
46      Montana                   0         0         0         0       106
----    -------------     --------- --------- --------- --------- ---------
48      Nebraska                 58         0         6         0        59
----    -------------     --------- --------- --------- --------- ---------
1       Nevada                6,058         0     3,959         0     3,825
----    -------------     --------- --------- --------- --------- ---------
22      New Hampshire             0         0       539         0       358
----    -------------     --------- --------- --------- --------- ---------
13      New Jersey                0     4,948         0     1,413     1,074
----    -------------     --------- --------- --------- --------- ---------
25      New Mexico                0       846         0       283       115
----    -------------     --------- --------- --------- --------- ---------
40      New York                  0     3,601         0       703       493
----    -------------     --------- --------- --------- --------- ---------
36      North Carolina          624         0     1,133         0     1,690
----    -------------     --------- --------- --------- --------- ---------
47      North Dakota              0         0         0        16        43
----    -------------     --------- --------- --------- --------- ---------
12      Ohio                      0     4,628         0     3,503     3,515
----    -------------     --------- --------- --------- --------- ---------
35      Oklahoma                  0       520         0       571       461
----    -------------     --------- --------- --------- --------- ---------
16      Oregon                   46         0     2,046         0     1,068
----    -------------     --------- --------- --------- --------- ---------
34      Pennsylvania              0     1,798         0     2,532     1,215
----    -------------     --------- --------- --------- --------- ---------
14      Rhode Island              0         0       704         0       199
----    -------------     --------- --------- --------- --------- ---------
26      South Carolina            0     1,484         0       601       804
----    -------------     --------- --------- --------- --------- ---------
44      South Dakota              0        40         0        46        19
----    -------------     --------- --------- --------- --------- ---------
23      Tennessee                 0         0     1,906         0     2,124
----    -------------     --------- --------- --------- --------- ---------
28      Texas                    10         0     7,236         0     4,552
----    -------------     --------- --------- --------- --------- ---------
10      Utah                  1,027         0       615         0       761
----    -------------     --------- --------- --------- --------- ---------
50      Vermont                   0         0         0         0        15
----    -------------     --------- --------- --------- --------- ---------
19      Virginia                 21         0     3,618         0     1,845
----    -------------     --------- --------- --------- --------- ---------
29      Washington                0         0     1,491         0     1,846
----    -------------     --------- --------- --------- --------- ---------
49      West Virginia             0         0        47         0        53
----    -------------     --------- --------- --------- --------- ---------
18      Wisconsin                 0     1,983         0     1,158     1,170
----    -------------     --------- --------- --------- --------- ---------
45      Wyoming                   0         0        20         0        46
----    -------------     --------- --------- --------- --------- ---------


                            Properties with Foreclosure Filings
                          ---------------------------------------
                                              % change  % change
Rate                                1/every X   from      from
Rank    State Name          Total   HU (rate)  Sep 09    Oct 08
----    --------------    --------- --------- --------- ---------
--      U.S.                332,292       385     -3.30     18.86
----    --------------    --------- --------- --------- ---------
31      Alabama               2,447       873      1.45    192.70*
----    --------------    --------- --------- --------- ---------
33      Alaska                  304       928     35.11     17.83
----    --------------    --------- --------- --------- ---------
4       Arizona              13,345       200    -10.60    -23.77
----    --------------    --------- --------- --------- ---------
24      Arkansas              1,892       680     12.22     -0.16
----    --------------    --------- --------- --------- ---------
2       California           85,420       156     -1.06     49.98
----    --------------    --------- --------- --------- ---------
11      Colorado              5,047       421    -18.75     -6.08
----    --------------    --------- --------- --------- ---------
20      Connecticut           2,306       624      8.06    -25.90
----    --------------    --------- --------- --------- ---------
32      Delaware                439       885    106.10    112.08
----    --------------    --------- --------- --------- ---------
        District of
         Columbia               258     1,102    -38.57     13.66
----    --------------    --------- --------- --------- ---------
3       Florida              51,911       168     -5.68     -4.44
----    --------------    --------- --------- --------- ---------
8       Georgia              12,468       318    -16.72     25.94
----    --------------    --------- --------- --------- ---------
17      Hawaii                  925       548     -4.54    134.18
----    --------------    --------- --------- --------- ---------
5       Idaho                 2,471       255     -2.29    110.66*
----    --------------    --------- --------- --------- ---------
6       Illinois             19,946       263     56.18     57.29
----    --------------    --------- --------- --------- ---------
21      Indiana               4,386       633     -1.50    -18.84
----    --------------    --------- --------- --------- ---------
43      Iowa                    423     3,143    -45.35    -15.40
----    --------------    --------- --------- --------- ---------
37      Kansas                  929     1,313    -26.97     41.62
----    --------------    --------- --------- --------- ---------
39      Kentucky              1,164     1,638     -9.84    120.45
----    --------------    --------- --------- --------- ---------
38      Louisiana             1,274     1,459    -22.74     98.44*
----    --------------    --------- --------- --------- ---------
41      Maine                   363     1,919    -11.03      3.71
----    --------------    --------- --------- --------- ---------
9       Maryland              6,661       348     -1.33    124.05
----    --------------    --------- --------- --------- ---------
15      Massachusetts         5,411       503     17.20     49.06
----    --------------    --------- --------- --------- ---------
7       Michigan             16,468       275     -1.78     44.54**
----    --------------    --------- --------- --------- ---------
27      Minnesota             2,983       773    -14.70     12.14
----    --------------    --------- --------- --------- ---------
42      Mississippi             539     2,328    -61.96    173.60*
----    --------------    --------- --------- --------- ---------
30      Missouri              3,218       823      2.03    -12.36†
----    --------------    --------- --------- --------- ---------
46      Montana                 106     4,109     -2.75    165.00
----    --------------    --------- --------- --------- ---------
48      Nebraska                123     6,348    -65.35    146.00
----    --------------    --------- --------- --------- ---------
1       Nevada               13,842        80    -26.24     -4.43
----    --------------    --------- --------- --------- ---------
22      New Hampshire           897       662     14.85     29.81
----    --------------    --------- --------- --------- ---------
13      New Jersey            7,435       471     38.53    -12.25
----    --------------    --------- --------- --------- ---------
25      New Mexico            1,244       693     55.89    371.21*
----    --------------    --------- --------- --------- ---------
40      New York              4,797     1,655    -15.74     27.55
----    --------------    --------- --------- --------- ---------
36      North Carolina        3,447     1,197     -7.71      7.25
----    --------------    --------- --------- --------- ---------
47      North Dakota             59     5,264     73.53     40.48
----    --------------    --------- --------- --------- ---------
12      Ohio                 11,646       435      6.52     -3.82
----    --------------    --------- --------- --------- ---------
35      Oklahoma              1,552     1,046    -48.49     89.96*
----    --------------    --------- --------- --------- ---------
16      Oregon                3,160       509     -9.25     11.23
----    --------------    --------- --------- --------- ---------
34      Pennsylvania          5,545       988      0.93     38.45
----    --------------    --------- --------- --------- ---------
14      Rhode Island            903       499     -7.95     55.15
----    --------------    --------- --------- --------- ---------
26      South Carolina        2,889       700    -10.58     42.25
----    --------------    --------- --------- --------- ---------
44      South Dakota            105     3,402    -17.32    208.82
----    --------------    --------- --------- --------- ---------
23      Tennessee             4,030       676     14.13     -0.20
----    --------------    --------- --------- --------- ---------
28      Texas                11,798       800    -10.73     19.17
----    --------------    --------- --------- --------- ---------
10      Utah                  2,403       385    -34.74     32.62
----    --------------    --------- --------- --------- ---------
50      Vermont                  15    20,762    -53.13     15.38
----    --------------    --------- --------- --------- ---------
19      Virginia              5,484       597     -4.71    -16.34†
----    --------------    --------- --------- --------- ---------
29      Washington            3,337       822      9.20    -22.00
----    --------------    --------- --------- --------- ---------
49      West Virginia           100     8,827    -68.94     12.36
----    --------------    --------- --------- --------- ---------
18      Wisconsin             4,311       594      3.78    128.22
----    --------------    --------- --------- --------- ---------
45      Wyoming                  66     3,672    -32.65    -35.29
----    --------------    --------- --------- --------- ---------
*  Actual increase may not be as high due to data collection changes
   or improvements
** Collection of records classified as NOD began in August 2009
   because of change in state law
†  Collection of some records previously classified as NOD in this
   state was discontinued starting in January 2009

About RealtyTrac Inc.

RealtyTrac (www.realtytrac.com) is the leading online marketplace of foreclosure properties, with more than 1.5 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac's foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures. RealtyTrac publishes a blog with daily updates on the foreclosure market (www.foreclosurepulse.com) and a monthly print newsletter covering the foreclosure market in depth (www.foreclosurenewsreport.com).

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