Foreclosure activity increased in all categories in
October according to the RealtyTrac U.S. Foreclosure Market Report released on
Thursday. There were 230,678 foreclosure filings during the month, an increase
of 7 percent from September but 31 percent less than activity in October 2010. While there had been encouraging numbers in
September, October was the second out of three months to have a significant
increase in filings.
Irvine, California firm, issues regular reports on foreclosure activity
throughout the United States, tracking foreclosure filings in three
- Notice of Default (NOD) and
Lis Pendens (LIS). This is the first legal notification from a lender that
the borrower on a mortgage loan has defaulted under the terms of their
mortgage and the lender intends to foreclose unless the loan is brought
- Auction – Notice of Trustee
Sale and Notice of Foreclosure Sale (NTS and NFS): if
the borrower does not catch up on their payments the lender will file a
notice of sale (the lender intends to sell the property). This notice is
published in local paper and contains information pertaining to the date,
time and subject property address.
- Real Estate Owned or REO
properties : “REO” stands for
“real estate owned” and typically refers to the inventory of
real estate that banks and mortgage companies have foreclosed on and
subsequently purchased through the foreclosure auction if there was no
offer higher than the minimum bid.
in every 563 U.S. housing unit received one of these filings during the month
but the distribution of these filings was enormous. In Nevada, which, for the 58th
straight month, leads the nation in foreclosure activity, one in every 180
housing units was affected; in Mississippi one in 4,007, Vermont one in 12,570,
and in the
District of Columbia one in 25,921.
were increases in each filing category.
Default notices were filed on 77,733 properties in October, up 10
percent from September but down 23 percent year-over-year. Default notices in states using a judicial
form of foreclosure were up 16 percent
to an 11 month high, but were still 31 percent lower than a year
auctions were scheduled for the first time on 85,321 properties, an 8 percent
increase from September but down 38 percent from October 2010. Scheduled auctions in judicial foreclosure
states were also at an 11 month high and were up 22 percent from the previous
repossessed 67,624 properties during the month, a 4 percent monthly increase
but a 27 percent annual decrease. REO
activity increased more than 40 percent month-to-month in several states, most
notably in Indiana where it was up 73 percent.
“The October foreclosure numbers
continue to show strong signs that foreclosure activity is coming out of the
rain delay we’ve been in for the past year as lenders corrected foreclosure
paperwork and processing problems,” said James Saccacio, chief executive
officer of RealtyTrac. “However, recent state court rulings and new state laws
keep changing the rules of the foreclosure game on the fly, creating more
uncertainty in the housing market and threatening to prolong the road to a
robust real estate recovery.”
While Nevada still leads the nation in
foreclosure activity there was a 34 percent decrease in activity from the
previous month, driven by a 75 percent drop in new default notices. This was probably the result of a new law
that requires lenders to sign an affidavit with key information about the
foreclosure and record it in public records.
Other states with a high level of activity were California with
one in every 243 housing units receiving a notice, a 17 percent monthly
increase; Arizona with one in every 259 units involved and an 18 percent
monthly increase, and Florida with a spike in both default notices and
scheduled options that bounced it back up to a 12 month high and to fourth
place from sixth in September. One in 268
housing units was the subject of a filing.
Michigan was the fifth most active state,
increasing 13 percent from September and reaching a 12-month high. One in every 282 housing units received a
filing. Other states with
foreclosure rates ranking among the top 10 were Georgia, Illinois, Idaho,
Oregon, and Colorado.