SOURCE: RealtyTrac

RealtyTrac

October 14, 2010 00:00 ET

Foreclosure Activity Increases 4 Percent in Third Quarter According to RealtyTrac® U.S. Foreclosure Market Report

Bank Repossessions and Scheduled Auctions Set Quarterly Records While New Defaults Continue to Decline

IRVINE, CA--(Marketwire - October 14, 2010) -  RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for the third quarter of 2010, which shows that foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 930,437 properties in the third quarter, a nearly 4 percent increase from the previous quarter but a 1 percent decrease from the third quarter of 2009. One in every 139 U.S. housing units received a foreclosure filing during the quarter.

Foreclosure filings were reported on 347,420 U.S. properties in September, an increase of nearly 3 percent from the previous month and an increase of 1 percent from September 2009. A record total of 102,134 bank repossessions were reported in September, the first time bank repossessions have surpassed the 100,000 mark in a single month.

"Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months," said James J. Saccacio, chief executive officer of RealtyTrac. "We expect to see a dip in those bank repossessions -- and possibly earlier stages of the foreclosure process -- in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks."

Impact of lender foreclosure halts
Foreclosure activity in the 24 judicial foreclosure states most affected by the foreclosure documentation issue accounted for 40 percent of all foreclosure activity in the third quarter and 36 percent of bank repossessions, or REOs.

"If the lenders can resolve the documentation issue quickly, then we would expect the temporary lull in foreclosure activity to be followed by a parallel spike in activity as many of the delayed foreclosures move forward in the foreclosure process," Saccacio said. "However, if the documentation issue cannot be quickly resolved and expands to more lenders we could see a chilling effect on the overall housing market as sales of pre-foreclosure and foreclosed properties, which account for nearly one-third of all sales, dry up and the shadow inventory of distressed properties grows -- causing more uncertainty about home prices."

Preliminary RealtyTrac foreclosure sales numbers for September show that overall foreclosure sales -- including pre-foreclosure sales and REO sales -- accounted for 31 percent of all sales during the month. REO sales alone accounted for 18 percent of all sales. Foreclosure sales in the 24 states most affected by the foreclosure documentation issue accounted for 32 percent of all foreclosure sales nationwide, based on the preliminary September data.

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Foreclosure Activity by Type
During the quarter a total of 269,647 properties received default notices (Notices of Default or Lis Pendens), a decrease of 1 percent from the previous quarter and a decrease of 21 percent from the third quarter of 2009, when default notices peaked at more than 342,000.

Foreclosure auctions were scheduled for the first time on a total of 372,445 properties during the quarter, the highest quarterly total for scheduled auctions in the history of the report. Scheduled auctions increased 5 percent from the previous quarter and were up 4 percent from the third quarter of 2009.

Bank repossessions (REOs) also hit a record high for the report in the third quarter, with a total of 288,345 properties repossessed by the lender during the quarter -- an increase of 7 percent from the previous quarter and an increase of 22 percent from the third quarter of 2009.

Nevada, Arizona, Florida post top state foreclosure rates in third quarter
As it has for the past 15 quarters, Nevada continued to document the nation's highest state foreclosure rate in the third quarter of 2010 despite a year-over-year decline in foreclosure activity. One in every 29 Nevada housing units received a foreclosure filing during the quarter, almost five times the national average. Nevada foreclosure activity increased nearly 1 percent from the previous quarter but was down nearly 20 percent from the third quarter of 2009.

Arizona posted the nation's second highest state foreclosure rate for the fifth consecutive quarter, with one in every 55 housing units receiving a foreclosure filing, and Florida posted the nation's third highest state foreclosure rate for the fourth consecutive quarter, with one in every 56 housing units receiving a foreclosure filing.

With one in every 70 housing units receiving a foreclosure filing during the third quarter, California documented the nation's fourth highest foreclosure rate, followed by Idaho, with one in every 86 housing units receiving a foreclosure filing during the quarter. A total of 7,424 Idaho housing units received a foreclosure filing during the quarter, an increase of nearly 20 percent from the previous quarter and an increase of nearly 14 percent from the third quarter of 2009.

Other states with foreclosure rates ranking among the top 10 in the third quarter were Utah, Georgia, Michigan, Illinois and Hawaii.

Five states account for more than 50 percent of nation's third quarter total
California alone accounted for 21 percent of the nation's total foreclosure activity in the third quarter, with 191,016 properties receiving a foreclosure notice -- the nation's largest foreclosure activity total. California foreclosure activity decreased nearly 1 percent from the previous quarter and was down nearly 24 percent from the third quarter of 2009.

Florida foreclosure activity increased 12 percent from the previous quarter and was flat from a year ago, giving the state the second largest foreclosure activity total, with 157,026 properties receiving a foreclosure filing.

With 49,103 properties receiving a foreclosure filing in the third quarter, Arizona posted the nation's third largest state foreclosure activity total. Arizona foreclosure activity increased nearly 8 percent from the previous quarter but was down 2 percent from the third quarter of 2009.

Illinois posted the nation's fourth largest foreclosure activity total, with 47,802 properties receiving foreclosure filings, and Michigan posted the nation's fifth largest foreclosure activity total, with 46,100 properties receiving foreclosure filings. Foreclosure activity in both Illinois and Michigan increased on a quarterly and annual basis in the third quarter.

Other states with foreclosure activity totals among the nation's 10 highest were Georgia (41,231), Nevada (38,429), Ohio (36,677), Texas (34,187) and Washington (17,670)

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 and quarter -- broken out by type of filing. Some foreclosure filings entered into the database during a month or quarter may have been recorded in previous months or quarters. 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). For the quarterly report, if more than one foreclosure document is received for a property during the quarter, only the most recent filing is counted in the report. Both the quarterly and monthly reports check if the same type of document was filed against a property previously. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state where the property is located, the report does not count the property in the current month or quarter.

U.S. Foreclosure Market Data by State - Q3 2010

      Properties with Foreclosure Filings
Rate Rank   State Name NOD LIS NTS NFS REO Total 1/every X HU (rate) % Change from Q2 2010 % Change from Q3 2009
--   U.S. 116,349 153,298 243,869 128,576 288,345 930,437 139 3.90 -0.79
38   Alabama 0 0 2,196 0 2,776 4,972 434 -11.95 -16.45
34   Alaska 5 0 516 0 294 815 348 6.96 6.68
2   Arizona 36 0 30,743 0 18,324 49,103 55 7.65 -2.46
21   Arkansas 348 0 3,568 0 1,837 5,753 226 -3.65 11.10
4   California 80,886 0 63,448 0 46,682 191,016 70 -0.73 -23.61
12   Colorado 194 0 10,321 0 5,800 16,315 132 6.72 0.31
24   Connecticut 0 3,738 0 486 1,710 5,934 243 -10.65 16.06
23   Delaware 0 0 0 907 719 1,626 242 17.57 109.00*
    District of Columbia 0 0 523 0 174 697 409 -7.56 -41.08
3   Florida 0 61,745 0 59,240 36,041 157,026 56 12.41 0.06
7   Georgia 0 0 25,592 0 15,639 41,231 98 8.30 23.50
10   Hawaii 186 0 2,504 0 1,370 4,060 126 18.13 48.01
5   Idaho 2,019 0 3,538 0 1,867 7,424 86 19.74 13.67
9   Illinois 0 21,932 0 12,230 13,640 47,802 110 4.90 28.26
17   Indiana 0 4,015 0 5,005 5,215 14,235 196 -2.33 17.63
41   Iowa 19 0 902 0 1,322 2,243 593 18.11* 14.97*
39   Kansas 0 456 0 933 1,415 2,804 438 -5.65 -17.58
40   Kentucky 0 1,249 0 1,224 1,656 4,129 465 7.58* 25.92*
35   Louisiana 0 890 0 2,819 1,560 5,269 357 7.86* 32.19*
43   Maine 0 275 0 413 202 890 787 -2.94 -15.48
15   Maryland 0 3,753 0 7,667 2,667 14,087 166 -9.91 -4.84
22   Massachusetts 0 5,725 0 3,251 3,041 12,017 228 -10.81 -5.13
8   Michigan 10,943 0 16,755 0 18,402 46,100 98 1.43 24.51
25   Minnesota 26 0 4,230 0 5,243 9,499 245 5.56 -10.56
46   Mississippi 0 0 705 0 727 1,432 885 40.12 -35.50
27   Missouri 15 0 4,871 0 5,441 10,327 258 8.50 30.85
37   Montana 0 0 667 0 501 1,168 375 74.07* 298.63*
45   Nebraska 406 0 155 0 332 893 881 13.76 21.50
1   Nevada 16,845 0 11,234 0 10,350 38,429 29 0.92 -19.81
26   New Hampshire 0 0 1,412 0 941 2,353 254 -1.18 21.04
19   New Jersey 0 9,670 0 4,129 2,666 16,465 214 -25.08 -9.07
29   New Mexico 0 1,516 0 980 739 3,235 269 -8.15 48.19
42   New York 0 8,124 0 2,311 1,467 11,902 670 -6.20 -21.91
32   North Carolina 932 0 5,584 0 6,664 13,180 319 9.32 34.24
49   North Dakota 0 1 0 44 91 136 2,304 -10.53 19.30
13   Ohio 0 13,205 0 12,301 11,171 36,677 139 19.69 23.72
31   Oklahoma 0 1,956 9 2,233 1,608 5,806 282 2.27 15.38
11   Oregon 103 0 7,350 0 4,973 12,426 131 16.94 20.43
33   Pennsylvania 0 5,039 0 6,316 5,448 16,803 327 10.29 18.61
36   Rhode Island 0 0 869 0 340 1,209 374 -12.07 -22.20
16   South Carolina 0 4,669 0 1,579 4,302 10,550 195 12.67 39.81
44   South Dakota 0 144 0 151 144 439 823 5.78 20.60
28   Tennessee 0 0 4,364 0 5,982 10,346 267 -13.38 -4.98
30   Texas 50 0 18,184 0 15,953 34,187 281 4.23 14.58
6   Utah 3,285 0 3,718 0 3,700 10,703 88 11.91 12.04
48   Vermont 0 0 15 0 230 245 1,276 469.77* 295.16*
20   Virginia 51 0 9,288 0 5,925 15,264 217 -13.61 -8.53
14   Washington 0 0 10,458 0 7,212 17,670 158 28.17 70.31
50   West Virginia 0 0 85 0 287 372 2,383 13.41 -34.74
18   Wisconsin 0 5,196 9 4,357 3,359 12,921 199 0.22 15.56
47   Wyoming 0 0 56 0 196 252 978 17.21 16.13

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

U.S. Foreclosure Market Data by State - September 2010

      Properties with Foreclosure Filings
Rate Rank   State Name NOD LIS NTS NFS REO Total 1/every X HU (rate) % Change from Aug 10 % Change from Sep 09
--   U.S. 48,348 54,008 94,187 48,743 102,134 347,420 371 2.53 1.10
41   Alabama 0 0 668 0 928 1,596 1,352 -16.44 -33.83
36   Alaska 1 0 178 0 94 273 1,038 -29.27 21.33
3   Arizona 8 0 10,205 0 6,904 17,117 159 3.68 14.67
20   Arkansas 90 0 1,411 0 735 2,236 581 16.52 32.62
4   California 31,702 0 25,746 0 17,756 75,204 178 8.77 -12.89
12   Colorado 157 0 3,560 0 2,313 6,030 357 3.01 -2.93
26   Connecticut 0 1,388 0 180 509 2,077 695 15.65 -2.67
22   Delaware 0 0 0 279 332 611 643 -14.78 186.85*
    District of Columbia 0 0 218 0 91 309 923 58.46 -26.43
2   Florida 0 22,071 0 24,200 13,243 59,514 148 4.64 8.14
8   Georgia 0 0 9,355 0 4,680 14,035 287 -14.24 -6.26
9   Hawaii 80 0 1,046 0 491 1,617 317 -0.74 66.87
5   Idaho 1,175 0 1,162 0 804 3,141 204 7.75 24.20
10   Illinois 0 6,780 0 4,513 4,573 15,866 333 -5.60 24.23
17   Indiana 0 1,342 0 1,868 1,954 5,164 541 -9.75 15.97
39   Iowa 19 0 556 0 555 1,130 1,176 79.37* 45.99*
40   Kansas 0 188 0 351 379 918 1,336 -25.00 -27.83
35   Kentucky 0 692 0 584 608 1,884 1,019 63.68* 45.93*
31   Louisiana 0 555 0 1,007 458 2,020 932 29.57* 22.50*
44   Maine 0 130 0 106 54 290 2,415 7.01 -28.92
21   Maryland 0 1,338 0 1,519 907 3,764 620 -22.54 -44.25
23   Massachusetts 0 1,691 0 1,510 848 4,049 676 -5.62 -12.30
6   Michigan 6,834 0 7,903 0 7,075 21,812 208 22.79 30.09
25   Minnesota 7 0 1,667 0 1,706 3,380 690 -2.82 -3.35
45   Mississippi 0 0 264 0 260 524 2,418 -10.88 -63.02
27   Missouri 6 0 2,111 0 1,661 3,778 705 -7.49 19.78
38   Montana 0 0 214 0 163 377 1,163 -33.98 245.87*
43   Nebraska 128 0 75 0 129 332 2,368 -2.06 -6.48
1   Nevada 6,399 0 5,755 0 4,209 16,363 69 22.25 -12.81
24   New Hampshire 0 0 554 0 312 866 690 5.61 10.88
19   New Jersey 0 4,075 0 1,288 737 6,100 577 27.70 13.66
34   New Mexico 0 415 0 243 221 879 992 -24.09 10.15
42   New York 0 2,210 0 908 550 3,668 2,175 -23.69 -35.57
33   North Carolina 368 0 2,113 0 1,788 4,269 984 -11.87 14.30
49   North Dakota 0 1 0 16 37 54 5,802 -6.90 58.82*
13   Ohio 0 4,616 0 4,853 3,625 13,094 388 -2.86 19.77
29   Oklahoma 0 716 0 910 435 2,061 794 4.09 -31.60
11   Oregon 26 0 2,694 0 1,905 4,625 352 12.64 32.83
32   Pennsylvania 0 1,881 0 2,220 1,684 5,785 950 -11.34 5.30
30   Rhode Island 0 0 383 0 134 517 874 27.97 -47.30
15   South Carolina 0 1,772 0 674 1,597 4,043 509 19.30 25.13
47   South Dakota 0 15 0 42 22 79 4,576 -53.53 -37.80
37   Tennessee 0 0 690 0 1,863 2,553 1,080 -40.14 -27.70
28   Texas 22 0 7,456 0 5,291 12,769 752 -10.64 -3.38
7   Utah 1,316 0 1,354 0 1,196 3,866 244 -5.64 5.00
50   Vermont 0 0 14 0 15 29 10,780 70.59* -9.38
18   Virginia 10 0 3,683 0 2,256 5,949 556 9.44 3.37
14   Washington 0 0 3,067 0 2,599 5,666 493 -16.18 85.41
48   West Virginia 0 0 58 0 102 160 5,540 25.98 -50.31
16   Wisconsin 0 2,132 0 1,472 1,289 4,893 525 13.98 17.79
46   Wyoming 0 0 27 0 57 84 2,933 -10.64 -14.29

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

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.

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