RealtyTrac: Foreclosure Starts In November Reached Lowest Level In 10 Years

Posted by Patrick Barnard on December 14, 2015 No Comments
Categories : Mortgage Servicing

About 41,208 properties started the foreclosure process for the first time in November – a decrease of 15% compared with October to reach the lowest monthly total since May 2005, according to RealtyTrac.

Foreclosure starts had decreased on a month-over-month basis for seven of the previous eight months – with the exception of an increase in October. November was the fifth consecutive month when national foreclosure starts decreased on a year-over-year basis.

Still, there are some areas of the country where foreclosure starts remain elevated compared with historical norms. States where foreclosure starts increased from a year ago included Oklahoma (up 246%), Arkansas (up 180%), Virginia (up 39%), Maine (up 5%) and Massachusetts (up 14%).

In addition, scheduled foreclosure auctions, which are an indication of completed foreclosures, in November reached the lowest level since December 2005. A total of 36,409 U.S. properties were scheduled for foreclosure auction during the month – a decrease of 22% compared with October and a decrease of 27% compared with November 2014.

Bank repossessions, however, continued to increase. There were a total of 40,329 properties repossessed by lenders in November – an increase of 10% compared with October and an increase of 60% compared with November 2014. It was the ninth consecutive month that the number of real estate owned (REO) properties increased on year-over-year basis.

States that saw the biggest increases in REOs in November, compared with November 2014, included Tennessee (up 608%), Mississippi (up 341%), Texas (298%), Nebraska (up 295%), New York (up 270%) and New Jersey (up 205%).

Through the first 11 months of 2015, there were about 410,249 completed foreclosures – an increase of 35% compared with 303,064 during the same time period in 2014.

States that saw the most completed foreclosures for the month included Florida (6,435), Texas (3,107), California (2,567), Illinois (2,338) and Georgia (2,302).

‘Banks are continuing to work through the backlog of lingering foreclosures, pushing bank repossession numbers higher in the short term even as foreclosure starts drop to new lows,’ says Daren Blomquist, vice president of RealtyTrac, in a press release. ‘This also means the share of active foreclosures tied to bubble-era loans is shrinking, with 59 percent of all loans in foreclosure originated between 2004 and 2008. While that is still a disproportionate share of active foreclosures, it continues to decrease from 61 percent earlier this year and 75 percent two years ago.’

About 104,111 U.S. properties saw some type of foreclosure filing, including default notices, scheduled auctions and bank repossessions, in November – a decrease of nearly 10% compared with October and a decrease of 7% compared with November 2014.

As of November, about one in every 1,268 U.S. housing units had some sort of a foreclosure filing during the month.

To view the full report, click here.

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