SOURCE: RealtyTrac

RealtyTrac

December 16, 2010 00:00 ET

Foreclosure Activity Decreases 21 Percent in November According to RealtyTrac® U.S. Foreclosure Market Report

U.S. Foreclosure Activity Drops to Lowest Level Since November 2008 Judicial Default Notices Drop More Than 30 Percent, REOs Down 28 Percent

IRVINE, CA--(Marketwire - December 16, 2010) - RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for November 2010, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 262,339 U.S. properties in November, a 21 percent decrease from the previous month and a 14 percent decrease from November 2009. One in every 492 U.S. housing units received a foreclosure filing during the month.

"Foreclosure activity decreased dramatically in November, with fewer than 300,000 properties receiving a foreclosure notice for the first time since February 2009," said James J. Saccacio, chief executive officer at RealtyTrac. "While part of the decrease can be attributed to a seasonal drop of 7 to 10 percent that typically occurs in November, fallout from the foreclosure robo-signing controversy forced lenders and servicers to hit the pause button on many foreclosures while they scrambled to revamp their internal procedures and revise or resubmit questionable paperwork."

Both the 21 percent month-over-month decrease and 14 percent year-over-year decrease in foreclosure activity were the highest drops recorded since RealtyTrac began publishing the U.S. Foreclosure Report in January 2005.

Foreclosure Activity by Type

A total of 78,955 U.S. properties received default notices (NOD, LIS) in November, a 21 percent decrease from the previous month and a 31 percent decrease from November 2009 -- the 10th straight annual decrease in default notices. November's default notices total was the lowest since July 2007.

Default notices in states that practice judicial foreclosures (called Lis Pendens filings) decreased 31 percent from the previous month and were down 43 percent from November 2009. Meanwhile non-judicial default notices (NOD) decreased 9 percent from the previous month and were down 12 percent from November 2009.

Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 115,956 U.S. properties in November, a 16 percent decrease from the previous month and unchanged from November 2009. Scheduled judicial foreclosure auctions (NFS) decreased 34 percent from the previous month and were down 12 percent from November 2009, while scheduled non-judicial foreclosure auctions (NTS) decreased 7 percent from the previous month but increased 5 percent from November 2009. 

Lenders foreclosed on 67,428 U.S. properties in November, down 28 percent from the previous month and down 12 percent from November 2009. Bank repossessions (REOs) decreased month-over-month in 37 states and the District of Columbia. November's REO total was the lowest since May 2009, but November's numbers pushed the year-to-date 2010 REO total to more than 980,000 -- already above the record year-end total for 2009.

Nevada, Utah, California post top state foreclosure rates

Despite a 20 percent monthly decrease in foreclosure activity, Nevada posted the nation's highest state foreclosure rate for the 47th straight month. One in every 99 Nevada housing units received a foreclosure filing in November -- nearly five times the national average.

Thanks in part to sharp monthly drops in foreclosure activity in Arizona, Florida, California and Michigan, Utah's foreclosure rate leapfrogged to second highest among the states in November after being sixth highest the previous month. One in every 221 Utah housing units received a foreclosure notice during the month -- more than twice the national average.

With one in every 233 housing units receiving a foreclosure filing in November, California posted the nation's third highest foreclosure rate despite a nearly 14 percent decrease in foreclosure activity from the previous month and a 22 percent decrease in foreclosure activity from November 2009.

Other states with foreclosure rates ranking among the top 10 in November were Arizona, Florida, Georgia, Michigan, Idaho, Illinois and Colorado.

10 states account for more than 70 percent of national total

California alone accounted for 22 percent of the national total in November, with 57,378 properties receiving a foreclosure filing during the month -- the nation's highest state total. Default notices in California, which is primarily a non-judicial foreclosure state, decreased 11 percent from the previous month, while scheduled auctions decreased 2 percent and bank repossessions decreased 40 percent.

With 32,938 properties receiving a foreclosure filing in November, Florida posted the second highest state total despite a 42 percent drop in foreclosure activity from the previous month. Default notices in Florida, which is a judicial foreclosure state, decreased 52 percent from the previous month, while scheduled auctions decreased 46 percent and bank repossessions decreased 20 percent.

With 15,311 properties receiving a foreclosure filing in November, Michigan posted the third highest state total despite a 21 percent drop in foreclosure activity from the previous month. Default notices in Michigan, which is primarily a non-judicial foreclosure state, decreased 4 percent from the previous month, while scheduled auctions decreased 20 percent and REOs decreased 35 percent.

Georgia posted the fourth highest state total, with 14,423 properties receiving a foreclosure filing, and Texas posted the fifth highest state total, with 13,369 properties receiving a foreclosure filing. Both states -- which are primarily non-judicial foreclosure states with short foreclosure processes that do not require a public default notice separate from the published foreclosure auction notice -- documented double-digit percentage increases in scheduled auctions from the previous month but also documented double-digit percentage decreases in bank repossessions from the previous month.

Other states with foreclosure activity totals among the nation's 10 highest in November were Illinois (12,941), Nevada (11,371), Ohio (10,458), Arizona (10,384) and Pennsylvania (5,672).

Top 10 metro foreclosure rates in Nevada, California and Florida

With one in every 86 housing units receiving a foreclosure filing in November, the Las Vegas-Paradise, Nev., metro area maintained the nation's highest foreclosure rate among metropolitan areas with a population of 200,000 or more. Las Vegas foreclosure activity decreased 19 percent from the previous month but was up 21 percent from November 2009.

Reno-Sparks, Nev., also posted a foreclosure rate in the top 10, at No. 8 with one in every 150 housing units receiving a foreclosure filing in November.

Seven California cities posted foreclosure rates that ranked in the top 10: Stockton at No. 2 with one in every 130 housing units receiving a foreclosure filing; Bakersfield at No. 3 (one in 133 housing units); Modesto at No. 4 (one in 135 housing units); Vallejo-Fairfield at No. 5 (one in 144 housing units); Merced at No. 6 (one in 147 housing units); Riverside-San Bernardino-Ontario at No. 7 (one in 148 housing units); and Sacramento-Arden-Arcade-Roseville at No. 9 (one in 163 housing units).

Big monthly drops in foreclosure activity in many Florida metro areas resulted in only one metro area in the state with a foreclosure rate ranking among the top 10: Port St. Lucie at No. 10 with one in every 173 housing units receiving a foreclosure filing in November.

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: 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). 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.

 
U.S. Foreclosure Market Data by State - November 2010
         
        Properties with Foreclosure Filings
Rate Rank   State Name   NOD   LIS   NTS   NFS   REO   Total   1/
every X HU (rate)
  % Change
from Oct 10
  % Change
from Nov 09
--   U.S.   39,529   39,426   86,079   29,877   67,428   262,339   492   -21.02   -14.44
23   Alabama   0   0   1,773   0   981   2,754   784   39.02   28.39
34   Alaska   0   0   179   0   83   262   1,082   9.17   -3.68
4   Arizona   17   0   7,488   0   2,879   10,384   262   -37.21   -27.63
26   Arkansas   120   0   1,085   0   416   1,621   801   -19.15   3.12
3   California   25,834   0   23,331   0   8,213   57,378   233   -13.68   -22.46
10   Colorado   13   0   3,409   0   1,548   4,970   433   -13.58   -4.50
38   Connecticut   0   573   0   69   408   1,050   1,374   -49.40   -50.33
27   Delaware   0   0   0   296   171   467   841   -18.78   5.42
    District of Columbia   0   0   19     42   61   4,678   -79.25   -83.15
5   Florida   0   10,937   0   11,295   10,706   32,938   267   -42.07   -37.78
6   Georgia   0   0   11,228   0   3,195   14,423   279   -2.88   49.24
13   Hawaii   80   0   534   0   263   877   585   -31.00   0.57
8   Idaho   805   0   1,109   0   219   2,133   301   -7.22   -12.29
9   Illinois   0   7,218   0   3,255   2,468   12,941   408   -23.74   -21.20
22   Indiana   0   1,045   0   1,351   1,381   3,777   740   -31.39   -10.35
30   Iowa   0   341   0   556   451   1,348   986   -9.16   116.72
25   Kansas   0   304   0   686   548   1,538   798   33.86*   75.17*
39   Kentucky   0   644   0   466   277   1,387   1,385   4.92   37.74
37   Louisiana   0   361   0   635   422   1,418   1,328   -25.25   -20.91
42   Maine   0   109   0   206   55   370   1,893   26.71   1.37
41   Maryland   0   304   0   366   715   1,385   1,685   -56.30   -78.26
36   Massachusetts   0   1,171   0   671   396   2,238   1,222   -61.56   -44.12
7   Michigan   5,410   0   5,450   0   4,451   15,311   296   -20.62   -4.23
21   Minnesota   24   0   1,268   0   1,906   3,198   729   4.75   -6.85
47   Mississippi   0   0   291   0   140   431   2,940   -16.47   29.43
24   Missouri   10   0   2,093   0   1,273   3,376   789   -20.30   4.94
40   Montana   0   0   103   0   164   267   1,642   -13.31   73.38
43   Nebraska   152   0   137   0   72   361   2,178   -6.48   67.13
1   Nevada   4,700   0   4,904   0   1,767   11,371   99   -19.95   22.33
33   New Hampshire   0   0   394   0   167   561   1,064   -41.68   -25.70
16   New Jersey   0   3,703   0   675   886   5,264   668   1.27   -42.95
19   New Mexico   0   643   0   197   375   1,215   717   -0.25   120.11
46   New York   0   2,063   1   399   316   2,779   2,871   -27.31   -36.86
31   North Carolina   711   0   1,649   0   1,723   4,083   1,029   -15.26   24.75
49   North Dakota   0   0   0   31   18   49   6,395   0.00   6.52
11   Ohio   0   4,035   0   3,759   2,664   10,458   486   -20.97   -1.22
28   Oklahoma   0   928   0   404   550   1,882   870   9.55   27.42
15   Oregon   43   0   1,715   0   718   2,476   658   -33.83   -13.27
29   Pennsylvania   0   1,627   0   2,461   1,584   5,672   969   -9.75   14.24
35   Rhode Island   0   0   271   0   125   396   1,141   -41.42   -39.63
12   South Carolina   0   1,726   0   543   1,607   3,876   530   26.34   74.67
44   South Dakota   0   26   0   88   28   142   2,546   23.48   31.48
32   Tennessee   0   0   1,548   0   1,046   2,594   1,063   -2.66   -30.36
20   Texas   22   0   8,936   0   4,411   13,369   718   2.78   10.53
2   Utah   1,575   0   1,663   0   1,041   4,279   221   17.33   60.26
50   Vermont   0   0   6   0   4   10   31,262   -54.55   -37.50
18   Virginia   13   0   2,795   0   1,841   4,649   711   -18.84   1.29
17    Washington   0   0   2,640   0   1,427   4,067   686   -35.91   23.69
48   West Virginia   0   0   56   0   108   164   5,405   10.81   43.86
14   Wisconsin   0   1,668   0   1,468   1,095   4,231   607   -12.13   -1.47
45   Wyoming   0   0   4   0   84   88   2,800   17.33   100.00

*Actual increase may not be as high due to data collection changes or improvements

Report License
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.

About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the leading online marketplace of foreclosure properties, with more than 2 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.

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