Foreclosures Drop to 5-Year Lows

Foreclosures Drop to 5-Year Lows

Foreclosures continue to do the opposite of what most analysts had predicted: They keep falling rather than rising. 

Foreclosure filings in September fell 7 percent from August and are down 16 percent from last September, RealtyTrac reported Thursday. Foreclosure filings include default notices, scheduled auctions, and bank repossessions. 

The number of foreclosure filings in September reached their lowest level since July 2007. What’s more, foreclosure filings have decreased 13 percent in the third quarter compared to the third quarter of 2011, marking the ninth consecutive quarter with an annual decrease in foreclosure activity, RealtyTrac reports. 

“We’ve been waiting for the other foreclosure shoe to drop since late 2010, when questionable foreclosure practices slowed activity to a crawl in many areas, but that other shoe is instead being carefully lowered to the floor and therefore making little noise in the housing market — at least at a national level,” says Daren Blomquist, vice president at RealtyTrac. “Make no mistake, however, the other shoe is dropping quite loudly in certain states, primarily those where foreclosure activity was held back the most last year.”

A backlog of delayed foreclosures in certain states may be problematic in some areas soon, Blomquist says, particularly in judicial states, where foreclosures must be approved by a court. Florida, Illinois, Ohio, New Jersey, and New York have posted the largest year-over-year increases in foreclosure activity.  

Meanwhile, other states are seeing large drops in foreclosure activity, mostly centered in “non-judicial” states, where foreclosures do not have to be court-approved. For example, states like California, Georgia, Texas, Arizona, and Michigan have posted large drops in foreclosure activity. 

Source: RealtyTrac

Gov't Trims Half of Its Foreclosure Inventory

Gov't Trims Half of Its Foreclosure Inventory


The government was able to chip away at its foreclosure inventory in 2011, reducing it by nearly half, HousingWire reports in analyzing financial statements from three government enterprises.

From the end of 2010 to 2011, Freddie Mac, Fannie Mae, and the Department of Housing and Urban Development saw a 49 percent reduction in the number of REO properties it owns. The three government enterprises held about 150,700 properties as of Dec. 31, 2011, compared to 296,000 at the end of 2010.

“The GSEs sold REOs at a record pace in 2011,” HousingWire reports. “Combined, both sold more than 353,000 previously foreclosed property for the year.”

Here’s a closer look by how much the government enterprises trimmed their foreclosure inventories:

HUD: Reduced its foreclosure inventory to about 32,000, a 47 percent drop from more than 62,000 it held at the end of 2010. 
Fannie: Reduced its foreclosure inventory to more than 118,000, which is down 27 percent from about 162,000 at the end of 2010.
Freddie: Reduced its REO inventory to 60,500, down 16 percent from more than 72,000 in 2010.
Source: “Government-held REO Halved During Robo-Signing Freeze,” HousingWire (March 9, 2012)

Emily Hickman Lee

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States with the highest foreclosure rates

Lenders Repossess 1 Million Homes in 2010


Banks repossessed more than 1 million homes in 2010 and this year is expected to get even worse, according to RealtyTrac, a foreclosure tracking resource. About 5 million borrowers are at least two months behind on their mortgage payments, which industry analysts say will likely lead to lenders taking back even more homes this year as borrowers continue to struggle with job losses and dropping home values.



"2011 is going to be the peak," says Rick Sharga, a senior vice president at RealtyTrac Inc.

One in 45 U.S. households received a foreclosure filing last year, a record high and a 1.67 percent increase from 2009.



Some states are harder hit than others. In Nevada alone, one in every 11 households received a foreclosure filing last year. The state had a 71 percent spike in bank repossessions in December.



Banks in recent months have mostly slowed their pace in evictions, following allegations that they were handled improperly. But Sharga says banks will resume repossessions and the first quarter will likely show a rebound in foreclosure activity.



The states with the highest foreclosure rates:



• Nevada



• Arizona



• Florida



• California



• Utah



• Georgia



• Michigan



• Idaho



• Illinois



• Colorado



Source: “Lenders Take Back 1 Million Homes Last Year Despite Slowdown in Foreclosures in December,” Associated Press (Jan. 13, 2011)

Emily Lee

call/text 606-499-7836

Realty Group II

Broker:423-869-5111