RealtyTrac: Despite Some ‘Outliers,’ Foreclosure Activity Fell In First Half

Posted by Patrick Barnard on July 18, 2016 No Comments
Categories : Mortgage Servicing

A total of 253,408 U.S. properties started the foreclosure process in the first half of this year – down 17% from the first half of 2015, according to RealtyTrac’s first half foreclosure report.

Starts in the first half were the lowest level for any half-year period since RealtyTrac began tracking them in 2006.

Counter to the national trend, 13 states and the District of Columbia posted year-over-year increases in foreclosure starts, including Connecticut (up 91%), Massachusetts (up 35%), Arizona (up 12%), Ohio (up 10%) and Virginia (up 6%).

There were about 197,425 completed foreclosures in the first half of 2016, down 6% from a year ago, but still 48% above the pre-recession average of 133,391 per half-year.

Counter to the national trend, 26 states and the District of Columbia posted year-over-year increases in completed foreclosures, including Alabama (up 73%); New York (up 65%); New Jersey (up 56%); Massachusetts (up 43%); and Virginia up 37%).

There were a total of 227,473 foreclosure auctions in the first half, down 23% from a year earlier. About 27% of these properties were purchased by third-party investors, the highest share for the first six months of any year since 2000 (the earliest national data available), RealtyTrac says.

Looking all foreclosure activity – including default notices, scheduled auctions and bank repossessions – a total of 533,813 properties saw foreclosure filings of some sort during the first half. That’s down 11% from the first half of 2015 and down 20% from the second half of 2015.

Counter to the national trend, 19 states posted year-over-year increases in foreclosure activity in the first half, including Massachusetts (up 46%); Connecticut (up 40%); Virginia (up 18%); Alabama (up 11%); and New York (up 10%).

“Although there are some local outliers, the downward foreclosure trend continued in the first half of 2016 in most markets nationwide,” says Daren Blomquist, senior vice president at RealtyTrac, in a statement. “While U.S. foreclosure activity is still above its pre-recession levels, many of the states hit hardest by the housing crisis have now dropped below pre-recession foreclosure activity levels. With some exceptions, states with foreclosure activity continuing to run above pre-recession levels tend to be those with protracted foreclosure timelines still working through legacy distress from the last housing bust.”

For more, click here.

Register here to receive our Latest Headlines email newsletter

Leave a Comment