RealtyTrac reports biggest foreclosure spike in 4 years



The number of homes in foreclosure rose significantly, posting its largest month-over-month increase since August 2011, according to new data from RealtyTrac. The market tracker’s latest Foreclosure Market Report shows that foreclosure filings increased by six percent in October compared to the previous month.

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In total, one out of every 1,147 homes in the U.S. was hit by a foreclosure filing during October. Nonetheless, despite the month-over-month growth, foreclosure activity was still down 14 percent compared to October 2014.

“We’ve seen a seasonal increase in foreclosure starts in October for the past five consecutive years, so it’s not too surprising to see the monthly increase this October,” Daren Blomquist, vice president at RealtyTrac, said in prepared remarks.

“However, the 12 percent increase this October is more than double the average 5 percent monthly increase in the past five Octobers, and the even more dramatic monthly increases in some states is certainly a concern. The upward trend in foreclosure starts in those states in some cases could be an indication of fissures in economic fundamentals driving more distress and in other cases is more likely an indication of long-term delinquencies finally entering the foreclosure pipeline.”

In total, some 34 states saw foreclosure activity increase. Foreclosure starts rose by a whopping 300 percent month-over-month in Maryland, 37 percent in Michigan, 34 percent in Washington, 21 percent in California, 20 percent in Illinois and 13 percent in Florida.

Looking at foreclosure density, we can see that the following cities had the highest overall foreclosure rates at the end of October:

On a metro level, the following cities (with populations of 200,000 or more) had the highest foreclosure rates in October: Atlantic City, N.J. (1 in every 257 homes); Columbia, SC. (1 in every 333 homes); Trenton, N.J. (1 in every 390 homes); Baltimore, Md. (1 in every 429 homes); and Fayetteville, N.C. (1 in every 460 homes).

About Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

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