Foreclosures Drop, But Remain Elevated

Posted by Orb Staff on June 11, 2009 No Comments
Categories : Mortgage Servicing

Trac's monthly update of foreclosure filings shows activity dropped from April to May by 6%, but increased nearly 18% on a year-over-year basis. One in every 398 U.S. housing units received a foreclosure filing in May. ‘May foreclosure activity was the third-highest month on record, and marked the third straight month where the total number of properties with foreclosure filings exceeded 300,000 – a first in the history of our report," says James J. Saccacio, CEO. "While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions – or REOs – were up two percent, thanks largely to substantial increases in several states, including Michigan, Arizona, Washington, Nevada, Oregon and New York." REO activity is projected to increase in coming months as foreclosure delays implemented by various state laws come to an end, Saccacio adds. Unsurprisingly, Nevada, California and Florida had the highest foreclosure rates in May. One in every 64 Nevada homes received a filing during the month – more than six times the national average. Despite a 4% drop in foreclosure activity from April, California posted the nation's second-highest rate, with one in every 144 homes receiving a filing. Florida posted the third-highest state foreclosure rate in May, with one in every 148 housing units receiving a foreclosure filing during the month. California reported 92,249 properties with foreclosure filings in May, the highest total of any state and up nearly 23% from May 2008. Bank repossessions in California were down 1% from the previous month and defaults were down 18%, but scheduled auctions were up 18%. Default notices, scheduled auctions and bank repossessions in Florida were all down from the previous month, but the state still posted the nation's second-highest number of properties with foreclosure filings: 58,931, up 50% from May 2008. Nevada documented 17,157 properties with foreclosure filings in May, the third-highest total of any state and up nearly 83% from May 2008. A 23% increase in bank repossessions helped push Nevada foreclosure activity up 5% from the previous month. Other states with totals among the 10 highest in the country were Arizona (16,865), Michigan (13,891), Ohio (11,360), Illinois (10,942), Georgia (10,516), Texas (9,813) and Virginia (5,385). The top 10 states accounted for nearly 77% of total properties with foreclosure filings nationwide. SOURCE: Rea

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