SOURCE: ATTOM Data Solutions

ATTOM Data Solutions

October 13, 2016 00:01 ET

September Foreclosure Activity Decreases 24 Percent From a Year Ago to Lowest Level Since December 2005

Q3 2016 Foreclosure Activity Down 10 Percent From a Year Ago; Average Time to Foreclose Down Annually for First Time in Report History; Share of Foreclosure Auctions Sold to Investors Back Above Pre-Recession Levels

IRVINE, CA --(Marketwired - October 13, 2016) - ATTOM Data Solutions, the nation's leading source for comprehensive housing data and the new parent company of RealtyTrac, today released its September and Q3 2016 U.S. Foreclosure Market Report™, which shows a total of 82,972 properties with foreclosure filings -- default notices, scheduled auctions or bank repossessions -- in September, down 13 percent from the previous month and down 24 percent from a year ago to the lowest level since December 2005.

There were a total of 293,190 U.S. properties with foreclosure filings in Q3 2016, up 4 percent from the previous quarter but down 10 percent from a year ago. It was the fourth consecutive quarter where foreclosure activity has decreased on a year-over-year basis.

"Foreclosure activity has been on a steady slide downward over the past six years, finally dropping back below pre-crisis levels in September," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "While we've known that the national foreclosure problem has been dying a long, slow death for quite some time, the final nail in the coffin of the foreclosure crisis is the year-over-year decrease in the average foreclosure timeline nationwide that we saw in Q3 2016 -- the first time that's happened since we began tracking foreclosure timelines in Q1 2007.

"The decrease in the average foreclosure timeline indicates that banks have worked through the bulk of the legacy foreclosure backlog in most states -- with a few lingering exceptions -- and that most of the foreclosures being completed now are relatively recent defaults that are more efficiently progressing through the foreclosure pipeline," Blomquist added.

Average time to foreclose decreases annually for first time in report history
Properties foreclosed in Q3 2016 took an average of 625 days to complete foreclosure, down from 631 days in the previous quarter and down from 630 days a year ago -- the first year-over-year decrease since ATTOM began tracking average foreclosure timelines in Q1 2007.

The average time to foreclose decreased from a year ago in 19 states, including Nevada (down 22 percent), Massachusetts (down 22 percent), Michigan (down 21 percent), Oregon (down 20 percent), and Texas (down 20 percent).

States with the shortest foreclosure timelines for properties foreclosed in the third quarter were Virginia (196 days), New Hampshire (230 days), Texas (246 days), Minnesota (250 days), and Mississippi (253 days). All five states with the shortest foreclosure timelines employ the non-judicial foreclosure process.

New Jersey, Hawaii, New York, Florida, Illinois with longest foreclosure timelines
Counter to the national trend, the average time to foreclose in Q3 2016 increased from a year ago in 27 states, including Pennsylvania (up 28 percent), Wisconsin (up 25 percent), Maryland (up 22 percent), Arizona (up 21 percent), and Colorado (up 20 percent).

States with the longest average foreclosure timelines for properties foreclosed in the third quarter were New Jersey (1,262 days); Hawaii (1,241 days); New York (1,070 days); Florida (1,038 days); and Illinois (942 days). All five states with the longest foreclosure timelines primarily employ the judicial foreclosure process.

Delaware, New Jersey, Nevada post highest state foreclosure rates in September
The report showed a national foreclosure rate of one in every 1,600 U.S. properties with a foreclosure filing in September.

States with the highest foreclosure rates in September were Delaware (one in every 680 housing units with a foreclosure filing); New Jersey (one in every 691); Nevada (one in every 897); Illinois (one in every 946); and Florida (one in every 950).

Other states with foreclosure rates in the top 10 highest nationwide in September were Maryland (one in every 955 housing units with a foreclosure filing); South Carolina (one in every 1,049); Utah (one in every 1,258); Connecticut (one in every 1,290); and New Mexico (one in every 1,324).

Atlantic City, Rockford, Columbia post highest metro foreclosure rates in September
Among 216 metropolitan statistical areas with a population of at least 200,000, those with the highest foreclosure rates in September were Atlantic City, New Jersey (one in every 375 housing units with a foreclosure filing); Rockford, Illinois (one in every 597); Columbia, South Carolina (one in every 629); Tampa-St. Petersburg, Florida (one in every 710); and Jacksonville, Florida (one in every 722).

Other metro areas with foreclosure rates in the top 10 highest in September were Medford, Oregon (one in every 742 housing units with a foreclosure filing); Lakeland-Winter Haven, Florida (one in every 755); Chicago (one in every 767); Philadelphia (one in every 771); and Bakersfield, California (one in every 778).

September foreclosure starts drop to more than 11-year low
A total of 34,685 properties started the foreclosure process in September, down 13 percent from the previous month and down 20 percent from a year ago to the lowest level since May 2005 -- a more than 11-year low.

Counter to the national trend, 18 states posted year-over-year increases in foreclosure starts in September, including Arkansas (up 156 percent); Delaware (up 115 percent); Maryland (up 87 percent); Utah (up 63 percent); and Oklahoma (up 47 percent).

September bank repossessions decrease 32 percent from year ago
There were 27,514 properties repossessed by lenders (REO) in September, down 12 percent from the previous month and down 32 percent from a year ago to the lowest level since February 2015.

Counter to the national trend, nine states posted a year-over-year increase in REO activity in September, including Arizona (up 44 percent); Massachusetts (up 40 percent); Washington (up 18 percent); Connecticut (up 16 percent); and California (up 12 percent).

Investors purchase 44 percent of properties sold at foreclosure auction in Q3 2016
Third-party investors purchased 44 percent of all properties sold at foreclosure auction in the third quarter, with the remaining 56 percent transferring back to the foreclosing lender at the auction.

The 44 percent sold to third-party investors was the highest share going back as far as Q1 2000 -- the earliest data is available -- and well above the pre-recession peak of 30 percent in Q2 2005.

Of the properties sold to third-party investors at the foreclosure auction in Q3 2016, 38 percent were sold to institutional investors, defined as entities purchasing at least 10 properties in a calendar year. That was up from 32 percent in the previous quarter and 26 percent a year ago but still below the peak of 70 percent in Q2 2009.

Report methodology
The ATTOM Data Solutions U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the ATTOM Data Warehouse 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. ATTOM's report incorporates documents filed in all three phases of foreclosure: Default - Notice of Default (NOD) and Lis Pendens (LIS); Auction - Notice of Trustee's 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.

 
Foreclosure Market Data by State - September 2016
 
      Properties with Foreclosure Filings
Rate Rank  State Name  NOD  LIS  NTS  NFS  REO  Total  
1/every X HU (rate)
 % Change from Aug-16  % Change from Sept-15
--  U.S.  5,118  16,750  15,950  17,640  27,514  82,972  1,600  -12.78  -23.97
13  Alabama  0  0  763  0  650  1,413  1,550  1.80  9.28
45  Alaska  2  0  31  0  38  71  4,335  162.96  -35.45
14  Arizona  0  0  700  0  1,043  1,743  1,649  5.76  15.43
29  Arkansas  0  0  343  0  231  574  2,316  28.99  18.11
18  California  3,247  1  2,232  0  2,567  8,047  1,713  -20.61  -11.14
41  Colorado  146  0  293  0  214  653  3,428  -33.23  -28.40
9  Connecticut  0  670  0  159  326  1,155  1,290  -1.37  2.58
1  Delaware  0  252  0  262  91  605  680  9.80  59.21
   District of Columbia  1  0  101  0  20  122  2,466  7.02  269.70
5  Florida  0  3,008  0  3,070  3,448  9,526  950  -12.82  -33.37
15  Georgia  0  0  1,560  0  912  2,472  1,664  -6.75  -44.56
31  Hawaii  0  65  19  60  71  215  2,441  -23.21  -20.66
44  Idaho  2  0  68  0  86  156  4,330  -50.48  -56.30
4  Illinois  0  1,913  0  2,017  1,674  5,604  946  -5.40  -12.55
19  Indiana  0  291  0  883  466  1,640  1,714  -18.65  -43.25
36  Iowa  0  88  0  236  177  501  2,691  -29.93  -23.28
38  Kansas  0  193  0  185  60  438  2,832  -22.20  -41.05
40  Kentucky  0  150  0  326  152  628  3,087  -33.40  -9.64
32  Louisiana  0  0  0  515  299  814  2,443  32.79  -47.65
25  Maine  0  198  0  126  33  357  2,030  -10.30  7.85
6  Maryland  0  976  0  867  670  2,513  955  -34.52  -1.84
24  Massachusetts  0  695  0  432  453  1,580  1,783  -15.33  -12.12
30  Michigan  0  0  1,105  0  828  1,933  2,345  -9.46  -40.83
43  Minnesota  0  0  296  0  379  675  3,502  -26.55  -36.14
42  Mississippi  0  0  210  0  162  372  3,454  26.10  29.17
26  Missouri  0  0  571  0  719  1,290  2,111  -5.22  -20.22
46  Montana  0  0  37  0  33  70  6,954  9.38  48.94
34  Nebraska  111  0  76  42  84  313  2,573  8.30  13.00
3  Nevada  440  21  420  0  440  1,321  897  -9.52  -37.72
35  New Hampshire  0  0  173  0  57  230  2,684  -14.81  -33.14
2  New Jersey  0  1,854  0  2,080  1,233  5,167  691  -21.05  -34.55
10  New Mexico  0  250  0  290  145  685  1,324  -14.27  -8.67
20  New York  0  2,455  0  1,109  1,157  4,721  1,727  -19.17  -23.50
17  North Carolina  863  0  758  0  950  2,571  1,706  -8.54  -31.44
49  North Dakota  0  11  0  5  4  20  16,601  17.65  33.33
11  Ohio  0  1,083  0  1,489  1,229  3,801  1,351  -21.58  -35.50
22  Oklahoma  0  316  0  356  286  958  1,754  -14.00  -2.54
16  Oregon  0  53  287  347  320  1,007  1,674  8.86  -23.94
12  Pennsylvania  0  867  0  1,749  1,090  3,706  1,505  -14.19  -10.70
21  Rhode Island  0  0  136  0  129  265  1,747  -15.61  11.81
7  South Carolina  0  929  0  769  362  2,060  1,049  1.83  -13.59
48  South Dakota  0  0  0  17  9  26  14,199  -33.33  -43.48
33  Tennessee  0  0  474  0  674  1,148  2,473  -12.17  -38.68
27  Texas  0  25  3,114  0  1,686  4,825  2,111  20.84  -19.15
8  Utah  306  0  342  0  147  795  1,258  -27.26  18.30
47  Vermont  0  0  7  5  21  33  9,828  0.00  -25.00
28  Virginia  0  0  1,027  0  461  1,488  2,287  -25.79  -29.08
23  Washington  0  81  705  1  856  1,643  1,778  25.71  -20.78
50  West Virginia  0  0  22  0  31  53  16,664  -52.68  -51.82
39  Wisconsin  0  305  0  243  324  872  3,022  -34.44  -48.89
37  Wyoming  0  0  80  0  17  97  2,734  67.24  106.38
                     
Foreclosure Market Data by State - Q3 2016                     
                     
   Properties with Foreclosure Filings
Rate Rank  State Name  NOD  LIS  NTS  NFS  REO  Total  
1/every X HU (rate)
 
% Change from Aug-16
 
% Change from Sept-15
--  U.S.  15,987  55,323  43,916  48,824  129,140  293,190  453  4.34  -10.41
16  Alabama  0  0  1,634  0  3,320  4,954  442  22.05  20.30
46  Alaska  1  0  45  0  107  153  2,012  -35.71  -51.43
3  Arizona  0  0  2,472  0  9,149  11,621  247  117.66  142.21
39  Arkansas  0  0  632  0  747  1,379  964  0.44  2.45
12  California  10,808  1  6,491  0  15,822  33,122  416  28.56  13.42
37  Colorado  466  0  981  0  970  2,417  926  -2.26  -20.34
14  Connecticut  0  2,031  71  427  1,047  3,576  417  -4.26  12.42
2  Delaware  0  797  11  724  311  1,843  223  7.53  74.03
   District of Columbia  1  0  231  0  60  292  1,030  20.66  194.95
7  Florida  0  10,804  352  8,566  11,593  31,315  289  -8.38  -35.38
17  Georgia  0  0  3,833  0  4,622  8,455  487  11.56  -30.33
26  Hawaii  0  306  41  199  258  804  653  -7.59  6.77
38  Idaho  315  0  158  0  239  712  949  -9.07  -48.33
6  Illinois  0  5,713  282  5,080  8,245  19,320  274  12.69  2.46
20  Indiana  0  1,083  119  2,388  1,704  5,294  531  -24.13  -33.32
31  Iowa  0  601  27  589  509  1,726  781  -14.21  -25.18
40  Kansas  0  342  13  589  305  1,249  993  5.40  -30.76
35  Kentucky  0  500  32  992  713  2,237  867  -4.97  -11.51
36  Louisiana  0  273  44  1,080  887  2,284  871  -18.78  -38.87
27  Maine  0  656  14  261  174  1,105  656  -5.96  16.81
4  Maryland  0  2,785  318  3,217  2,766  9,086  264  -16.35  -16.32
18  Massachusetts  0  2,421  115  1,522  1,577  5,635  500  -9.19  11.87
29  Michigan  0  0  2,817  0  3,919  6,736  673  -12.59  -29.12
42  Minnesota  0  0  958  0  1,209  2,167  1,091  -29.02  -34.59
44  Mississippi  0  0  416  0  442  858  1,497  14.86  -8.72
28  Missouri  0  0  1,602  0  2,519  4,121  661  20.89  -12.86
48  Montana  0  0  102  0  85  187  2,603  -13.43  42.75
41  Nebraska  205  0  145  142  247  739  1,090  -13.87  7.26
5  Nevada  1,524  45  1,221  0  1,555  4,345  273  7.95  -28.37
33  New Hampshire  0  0  470  0  295  765  807  -10.42  -17.21
1  New Jersey  0  6,892  217  5,757  6,589  19,455  184  -0.50  -6.52
15  New Mexico  0  876  36  698  529  2,139  424  -3.95  -23.61
19  New York  0  8,080  205  3,159  4,616  16,060  508  -5.93  -7.45
24  North Carolina  1,885  0  2,104  0  2,968  6,957  630  -14.34  -39.48
50  North Dakota  0  25  0  8  31  64  5,188  300.00  88.24
10  Ohio  0  3,447  155  4,365  7,280  15,247  337  2.84  -0.55
22  Oklahoma  0  950  53  1,065  890  2,958  568  13.07  5.30
23  Oregon  0  248  786  695  1,159  2,888  584  8.21  -27.58
11  Pennsylvania  0  2,686  196  4,575  6,553  14,010  398  10.59  3.20
21  Rhode Island  0  0  418  0  414  832  556  -19.54  56.98
8  South Carolina  0  2,474  65  1,775  2,471  6,785  318  7.02  -1.51
49  South Dakota  0  0  0  39  36  75  4,922  4.17  -49.66
9  Tennessee  0  0  1,190  0  7,545  8,735  325  76.93  42.85
32  Texas  0  72  6,705  8  5,890  12,675  804  3.53  -17.59
13  Utah  782  0  718  0  902  2,402  416  36.01  10.49
45  Vermont  0  0  19  15  139  173  1,875  45.38  10.90
30  Virginia  0  0  3,278  0  1,661  4,939  689  -7.37  -10.77
25  Washington  0  193  1,877  3  2,508  4,581  638  -3.03  -26.08
47  West Virginia  0  0  84  0  266  350  2,523  5.42  6.06
34  Wisconsin  0  1,022  44  886  1,216  3,168  832  -22.43  -39.08
43  Wyoming  0  0  119  0  81  200  1,326  -31.97  -7.41
                     

Report License
The ATTOM Data Solutions U.S. Foreclosure Market Report is the result of a proprietary evaluation of information compiled by ATTOM; 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 ATTOM Data Solutions as the source for said report and/or any of the information set forth within the report.

Data Licensing and Custom Report Order
Investors, businesses and government institutions can contact ATTOM Data Solutions to license bulk foreclosure and neighborhood data or purchase customized reports. For more information please contact our Data Licensing Department at 800.462.5193 or datasales@attomdata.com.

About ATTOM Data Solutions
ATTOM Data Solutions is the curator of the ATTOM Data Warehouse, a multi-sourced national property database that aggregates property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, health hazards, neighborhood characteristics and other property characteristic data for more than 150 million U.S. properties. The ATTOM Data Warehouse delivers actionable data to businesses, consumers, government agencies, universities, policymakers and the media in multiple ways, including bulk file licenses, APIs and customized reports.

ATTOM Data Solutions also powers consumer websites designed to promote real estate transparency: RealtyTrac.com is a property search and research portal for foreclosures and other off-market properties; Homefacts.com is a neighborhood research portal providing hyperlocal risks and amenities information; HomeDisclosure.com produces detailed property pre-diligence reports.

ATTOM Data and its associated brands are cited by thousands of media outlets each month, including frequent mentions on CBS Evening News, The Today Show, CNBC, CNN, FOX News, PBS NewsHour and in The New York Times, Wall Street Journal, Washington Post, and USA TODAY.

Image Available: http://www.marketwire.com/library/MwGo/2016/10/12/11G117807/Images/US_FC_Activity_-_Spet16-eddcaf00784e97729a793cd10a3f840f.jpg

Contact Information