Foreclosure Activity Up Last Month but Down Year on Year

A recent report released by RealtyTrac shows the number of default notices, bank repossessions and scheduled auctions that were reported in the US in August, reached a figure of 116,913 properties. This is an increase of 7% compared to July, but is still 9% lower than a year earlier.

Last month a total of 51,192 properties in the US were scheduled for foreclosure auction, a decline of 1% compared to the previous month, but an increase of 1% compared to a year earlier. This is the first annual increase in scheduled foreclosure auctions, and comes after 44 consecutive months of annual decreases. The numbers of scheduled foreclosure auctions in the judicial foreclosure states, where the foreclosures have to be processed through the court system also increased by 5% compared to a year ago.

The article in RisMedia points out these latest foreclosure figures show that even though the crisis is well and truly over, the process of clearing up distressed properties is still continuing in many real estate markets. The annual increase in foreclosure auctions is the first scene since the robo signing controversy nearly 4 years ago and shows lenders have adjusted to the new guidelines for proper foreclosure that were subsequently implemented in many states.

The number of scheduled foreclosure auctions increased year on year in 24 states. In Maryland figures were up by 17%, by 21% in South Carolina, by 25% in Illinois, by 71% in New Jersey, by 72% in Oklahoma, and by 81% in New York and Connecticut. In Oregon the numbers increased by 117%, while Colorado topped the list at 160%.

In August more than 55,000 properties in the United States entered into the foreclosure process, an increase of 12% on the previous month while figures remained the same year on year. It was the second consecutive month where foreclosure starts increased month-to-month. In August lenders repossessed 26,343 properties, up 2% compared to July but down 33% compared to a year earlier. This was the 21st consecutive month where repossessions declined year on year.

Out of the nation’s 20 largest metro areas, six saw year on year increases in foreclosure activity. Figures increased by 2% in San Francisco, by 11% in Atlanta and Philadelphia, and by 12% in Baltimore. Top of the list were Washington DC and New York, where foreclosure activity increased by 18%. The states with the highest foreclosure rates overall were Georgia, New Jersey, Maryland, Nevada and Florida.