SOURCE: RealtyTrac

RealtyTrac

February 10, 2011 00:00 ET

Foreclosure Activity Increases 1 Percent in January According to RealtyTrac® U.S. Foreclosure Market Report

Foreclosure Activity Down 17 Percent From Year Ago; REO Activity Increases 12 Percent From December

IRVINE, CA--(Marketwire - February 10, 2011) - RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for January 2011, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 261,333 U.S. properties in January, a 1 percent increase from the previous month but a 17 percent decrease from January 2010. The report also shows one in every 497 housing units received a foreclosure filing during the month.

"We've now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000," said James J. Saccacio, chief executive officer of RealtyTrac. "Unfortunately this is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing."

Foreclosure Activity by Type
A total of 75,198 U.S. properties received default notices (NOD, LIS) in January, a 1 percent decrease from the previous month and a 27 percent decrease from January 2010 -- the 12th straight month where default notices decreased on a year-over-year basis. January was also the fourth straight month where default notices decreased on a month-over-month basis, giving it the lowest monthly total for default notices since July 2007. 

Default notices in states with a non-judicial foreclosure process (NOD) increased less than 1 percent from the previous month but were down 8 percent from January 2010, while default notices in states with a judicial foreclosure process (LIS) decreased 2 percent from December and were down 39 percent from January 2010.

Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 108,002 U.S. properties in January, a 4 percent decrease from the previous month and a 13 percent decrease from January 2010. It was the lowest monthly total for scheduled foreclosure auctions since February 2009.

Scheduled non-judicial foreclosure auctions (NFS) decreased 1 percent from December and were down 3 percent from January 2010, while scheduled judicial foreclosure auctions (NTS) decreased 14 percent from the previous month and were down 39 percent from January 2010.

Lenders foreclosed on 78,133 U.S. properties in January, up 12 percent from the previous month but still down 11 percent from January 2010. Bank repossessions (REO) in non-judicial foreclosure states increased 23 percent from December but were still down 9 percent from January 2010, while bank repossessions in judicial foreclosure states decreased 7 percent from the previous month and were down 16 percent from January 2010.

Nevada, Arizona, California post top state foreclosure rates
Nevada bank repossessions increased 16 percent from the previous month, helping the state maintain the nation's highest state foreclosure rate for the 49th straight month -- despite month-over-month decreases in default notices and scheduled auctions. One in every 93 Nevada housing units received a foreclosure filing in January -- more than five times the national average.

One in every 175 Arizona housing units received a foreclosure filing in January, the nation's second highest state foreclosure rate. Arizona foreclosure activity increased 16 percent from the previous month -- driven by a 54 percent month-over-month increase in REOs -- but was still down 25 percent from January 2010.

California REO activity increased 32 percent from the previous month, and the state posted the nation's third highest state foreclosure rate, with one in every 200 housing units receiving a foreclosure filing.

Idaho posted the nation's fourth highest state foreclosure rate, with one in every 241 housing units receiving a foreclosure filing, while Utah posted the nation's fifth highest state foreclosure rate, with one in every 265 housing units receiving a foreclosure filing during the month.

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

Five states account for more than 50 percent of national total
With 67,072 properties receiving a foreclosure filing, California accounted for more than 25 percent of the national total in January. After hitting a 25-month low in November, California foreclosure activity has increased on a month-over-month basis for two straight months.

Florida foreclosure activity decreased on a month-over-month basis for the fourth straight month, but the state's 21,671 properties receiving a foreclosure filing in January -- a 42-month low -- was still the second highest in the nation.

Michigan foreclosure activity increased for the second straight month, and the state posted the nation's third highest total, with 16,716 properties receiving a foreclosure filing in January.

Arizona posted the nation's fourth highest total, with 15,757 properties receiving a foreclosure filing, while Texas posted the nation's fifth highest total, with 14,897 properties receiving a foreclosure filing during the month.

Other states with foreclosure activity totals among the nation's 10 highest in January were Illinois (13,164), Georgia (12,772), Nevada (12,263), Ohio (8,924) and New Jersey (5,526).

Top 10 metro rates in Nevada, California, Arizona, while Florida metros drop
With one in every 82 housing units receiving a foreclosure filing in January, 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 nearly 13 percent from the previous month and increased less than 1 percent from January 2010.

The other Nevada metro area in the top 10 was Reno-Sparks, at No. 5 with one in every 132 housing units receiving a foreclosure filing.

Seven California metro areas posted foreclosure rates in the top 10, led by Modesto, at No. 2 with one in every 111 housing units receiving a foreclosure filing; Stockton, at No. 3 with one in every 114 housing units receiving a foreclosure filing; and Riverside-San Bernardino-Ontario, at No. 4 with one in every 120 housing units receiving a foreclosure filing. Other California metro areas with foreclosure rates in the top 10 were Vallejo-Fairfield at No. 6 (one in 135 housing units); Bakersfield at No. 7 (one in 143); Merced at No. 9 (one in 149); and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 151). Sacramento was the only California metro area in the top 10 to report increasing foreclosure activity on a month-over-month and year-over year basis.

With one in every 143 housing units receiving a foreclosure filing in January, the Phoenix-Mesa-Scottsdale metro area posted the nation's eighth highest metro foreclosure rate.

No Florida cities showed up in the top 20 metro foreclosure rates in January. In contrast the state accounted for nine of the top 20 metro foreclosure rates in 2010.

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 - January 2011

      Properties with Foreclosure Filings
Rate Rank   State Name NOD   LIS   NTS   NFS   REO   Total   1/every X HU (rate)   % Change 
from Dec 10
  % Change 
from Jan 10
--   U.S. 36,964   38,234   88,050   19,952   78,133   261,333   497   1.39   -17.23
34   Alabama 0   0   1,038   0   604   1,642   1,329   -15.92   -8.83
31   Alaska 0   0   165   0   100   265   1,071   38.74   -15.61
2   Arizona 7   0   8,997   0   6,753   15,757   175   16.19   -25.14
19   Arkansas 128   0   1,294   0   486   1,908   687   -3.34   -5.12
3   California 24,162   0   27,017   0   15,893   67,072   200   1.76   -6.61
10   Colorado 7   0   3,190   0   1,749   4,946   438   -3.46   -1.65
39   Connecticut 0   548   0   60   229   837   1,727   -25.27   -62.26
20   Delaware 0   0   0   192   376   568   698   28.80   23.48
    District of Columbia 0   0   6   0   16   22   12,961   -57.69   -88.54
9   Florida 0   8,882   0   5,231   7,558   21,671   409   -15.48   -53.96
7   Georgia 1   0   8,015   0   4,756   12,772   318   15.67   13.29
11   Hawaii 36   0   555   0   394   985   523   -1.50   -24.35
4   Idaho 776   0   1,215   0   695   2,686   241   29.38   3.19
8   Illinois 0   8,345   1   1,908   2,910   13,164   402   -6.25   -27.35
29   Indiana 0   913   0   1,001   1,075   2,989   940   -16.67   -35.33
28   Iowa 0   927   5   225   278   1,435   937   -9.12   131.08*
25   Kansas 0   330   0   432   720   1,482   833   38.63*   109.32*
38   Kentucky 0   684   0   248   278   1,210   1,599   21.85*   5.13
27   Louisiana 0   267   0   1,387   469   2,123   925   19.40*   76.62*
42   Maine 0   78   0   132   136   346   2,036   16.11   -3.08
37   Maryland 0   279   0   373   906   1,558   1,503   -4.71   -70.20
40   Massachusetts 0   602   6   496   460   1,564   1,757   -4.58   -65.52
6   Michigan 5,274   0   6,724   0   4,718   16,716   272   4.08   -4.88
26   Minnesota 80   1   1,126   0   1,367   2,574   906   -9.78   -8.50
46   Mississippi 0   0   123   0   169   292   4,391   -71.48   -29.81
24   Missouri 2   0   2,153   0   1,107   3,262   822   2.80   10.76
41   Montana 0   0   135   0   106   241   1,831   -6.95   -39.14
44   Nebraska 131   0   84   0   60   275   2,880   -0.72   -27.44
1   Nevada 4,535   0   4,212   0   3,516   12,263   93   -8.97   3.45
18   New Hampshire 0   0   648   0   253   901   666   99.78*   -20.55
16   New Jersey 0   4,011   0   863   652   5,526   638   12.84   -10.09
21   New Mexico 0   664   0   235   334   1,233   712   8.16   -3.75
43   New York 0   2,339   1   302   243   2,885   2,779   10.03   -36.86
35   North Carolina 367   0   1,582   0   1,091   3,040   1,401   1.16   -3.92
49   North Dakota 0   1   0   8   16   25   12,657   -13.79   -34.21
13   Ohio 0   3,889   0   2,701   2,334   8,924   571   -15.20   -19.64
30   Oklahoma 0   739   0   549   397   1,685   979   11.74   -4.96
15   Oregon 52   0   1,782   0   964   2,798   586   0.14   -41.85
36   Pennsylvania 0   986   0   1,782   924   3,692   1,495   -22.52   -27.37
33   Rhode Island 0   0   248   0   131   379   1,193   -26.97   -41.60
22   South Carolina 0   1,592   0   407   906   2,905   717   -3.62   -6.32
47   South Dakota 0   12   0   25   39   76   4,810   -59.14   442.86*
23   Tennessee 0   0   2,076   0   1,374   3,450   806   32.59   -11.79
17   Texas 16   0   9,898   0   4,983   14,897   653   33.46   21.86
5   Utah 1,372   0   1,303   0   926   3,601   265   8.11   -11.89
50   Vermont 0   0   11   0   10   21   14,964   40.00   40.00
32   Virginia 17   0   1,925   0   1,091   3,033   1,098   -11.21   -42.07
12   Washington 0   0   2,458   0   2,523   4,981   565   23.63   42.52
48   West Virginia 0   0   30   0   63   93   9,610   -19.83   25.68
14   Wisconsin 0   2,145   6   1,395   936   4,482   577   20.65   20.81
45   Wyoming 1   0   21   0   59   81   3,079   1.25   145.45*

*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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